SWFT Corp Partner Estates Trusts
42nd Edition
ISBN: 9780357161548
Author: Raabe
Publisher: Cengage
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Students have asked these similar questions
Pass through. If the corporation is structured as an S corporation, profits and losses are well-versed to the shareholders, in order that the corporation doesn't pay financial gain taxes.
Can you help me understand what that is, with details?
Indicate whether the following statements are true or false. If the statementis false, explain why.d. The Tax Code encourages companies to pay a large percentage of theirnet income in the form of dividends.
Select the best term for each definition below.
Definitions
Terms
a.
Shareholders can lose no more than the amount they invest in the company.
b.
Corporate earnings are taxed twice—at the corporate level and individual shareholder level.
c.
Like an S corporation, but there are no limitations on the number of owners as in an S corporation.
d.
Traces the line of authority within the corporation.
e.
Allows for legal treatment as a corporation, but tax treatment as a partnership.
f.
Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE).
g.
The first time a corporation issues stock to the public.
h.
Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.
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- A shareholder has a personal service business corporation. What rate of federal tax may be expected on net income?arrow_forward1.) Which of the following is tax exempt for a domestic corporation? a. business income derived from abroad b. dividend from a domestic corporation c. monetary benefit from deposit substitute 2.) Which of the following types of income is/are not returnable a. Professional Income b. Business Income c. Compensation Income d. Capital Gainsarrow_forwardWhat is an important reason business owners choose the election for s corporation status.arrow_forward
- Is it possible for shareholders to defer or avoid the second level of tax on corporate income altogether? Briefly explain.arrow_forwardAn S corporation avoids taxes at a. none of the choices. b. the corporate level. c. the market level. d. the shareholder levelarrow_forward4. Explain how these types of business may affect tax liability: a. Sole proprietor b. Partnership c. Limited liability partnership d. Companyarrow_forward
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