Sandra contributes appreciated property (i. e., adjusted basis of $65,000 and a fair market value of $100,000) to her business entity in a transaction that qualifies for nonrecognition of gain. Sandra's ownership interest is 60 percent. The business entity later sells the appreciated property for $110,000. The property is not depreciable. Which of the following statements is correct?
a. If the entity is an S corporation, the S corporation's gross income is increased by $10,000 in the year of the sale of the property by the S corporation and Sandra's gross income is increased by $6,000 ($10,000 × 60%).

b. If the entity is a C corporation, the corporation's gross income is increased by $10,000 in the year of the sale of the property by the corporation.

c. If the entity is a partnership, Sandra's gross income is increased by $41,000 [($35,000 × 100%) + ($10,000 × 60%)] in the year of the sale of the property by the partnership.

d. All of these choices are correct.

e. None of these choices are correct.

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.