Partnerships and S Corporations are generally not required to file a Federal tax return because they are not taxable entities. a. true. b. false.

Mary Kate is a 100% owner of MK, Inc., a C Corporation. In the current year, MK, Inc., reports $200,000 of taxable income and pays a $50,000 dividend to Mary Kate. Mary Kate is also a 100% owner of SMK, Inc., an S Corporation. In the current year, MK, Inc., reports $250,000 of taxable income and makes a $75,000 distribution to Mary Kate. How much taxable income related to MK, Inc,, and SMK, Inc., respectively, will Mary Kate report for the current year?

		a. $200,000 from MK, Inc., and $250,00 from SMK, Inc.
		b. $50,000 from MK, Inc., and $250,00 from SMK, Inc.
		a. $50,000 from MK, Inc., and $75,00 from SMK, Inc.
		a. $200,000 from MK, Inc., and $75,00 from SMK, Inc.