Which of the following items retain their character when they are passed through to shareholders of an S corporation? Wages paid Accelerated depreciation Net long-term capital gains Advertising expense All of the above retain their character when passed through

Which of the following items retain their character when they are passed through to shareholders of an S corporation? Wages paid Accelerated depreciation Net long-term capital gains Advertising expense All of the above retain their character when passed through

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following items retain their character when they are passed through to shareholders of an S corporation?

Wages paid
Accelerated depreciation
Net long-term capital gains
Advertising expense
All of the above retain their character when passed through

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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