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Tomas owns a sole proprietorship, and Lucy is the sole sharehalder of a C corporation. In the current year, both businesses make a net profit
Tomas owns a sole proprietorship, and Lucy is the sole sharehalder of a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, Tomas must report $60,000 of income on his individual tax return, but Lucy is not required to report any income from the corporation on her individual tax return. True Ovalse
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