Rover Corporation is a regular corporation that has not elected S corporation status. - 2673

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Rover Corporation is a regular corporation that has not elected S corporation status. In 1992, Rover earned $100,000; in 1993, Rover distributes $50,000 to its shareholders. Which of the following best describes the tax consequences to rover and its shareholders? 

A. The shareholders are taxed on $100,000 in 1992; Rover is not subject to tax. 

B. Rover is taxed on $100,000 in 1992; the shareholders are taxed on $50,000 in 1993. 

C. Rover is taxed on $100,000 in 1992; the shareholders are taxed on $50,000 in 1992. 

D. Rover is taxed on $100,000 in 1992; the shareholders are not subject to tax. 

Solution Description

) Rover Corporation is a regular corporation that has not elected S corporation status. In 1992, Rover earned $100,000; in 1993, Rover distribut