Question

each of the following types of income is passed through from an s corporation on schedule k to a shareholder on schedule k1 except: a) dividend income: b) gross receipts: c) interest income: d) royalties

Answer 1

A schedule K-1 is a tax document which is used to report the losses, incomes and dividend of the business's partners or an S corporation's shareholders.

Taking into account the above question except gross receipts everything will be included or transferred to k-1 because gross receipts is considered to be the amount which is received by the firm and it is considered that such receipts are without any deduction of expenses or losses so in such case gross receipts is not transferred.