became older, it was more beneficial for the two to sell the business and retire. Question 2: Do you think the decision to incorporate as a C corporation rather than an S corporation was correct? Explain. Answer 2: The Martins decision to incorporate a C corporation rather than an S corporation was a very smart decision. As an S corporation one of the disadvantages would be “that all shareholders must be individuals, estates, or some type of personal trust.” (Byrd & Megginson 66). The C corporation
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Small Business Idea Paper The government recently released funds to individuals who want to create a small business. This concept of releasing funds to individuals will create more jobs and stimulate the economy. The first step for a small business owner is to determine which of the four forms of business the organization will best fit with the new owner’s ideas. In addition, the business owner will need to review all tax legalities and implications associated with the different forms of business
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Tracy and Mark both have jobs that take them away from home for long hours. They are not spending the night away but they still require sleep in the middle of their shift in order to remain safe. Facts: Tracy and Mark both work in positions that take them away from home for extended periods of time thus requiring them to sleep in the middle of their shifts. Conclusion: If the nature of the taxpayer's employment is such that when away from home, during released time, it is reasonable for him
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| $40,000 $130,000 $90,000 $70,000 | Question 7. 7. Which of the following is not a characteristic of an S corporation? (Points : 1) | It is a flow through entity Owners increase their basis for debt taken by the S corporation Owner's participate in limited tax-free fringe benefits Owners increase their basis for gains and decrease basis for losses incurred by the S corporation | Question 8. 8. A corporation can carry a net operating loss forward (Points : 1) | 1 year 2
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liquidity, and infinite life. The disadvantages are double taxation, separation of ownership and control. 5. Explain the difference between an S corporation and a C corporation. C corporations must pay corporate income taxes; S corporations do not pay corporate taxes, but must pass through the income to shareholders to whom it is taxable. S corporations are also limited to 75 shareholders and cannot have corporate or foreign stockholders. 6. You are a shareholder in a C corporation.
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and Darlene would be an S corporation. An S corporation is a regular corporation that has elected S corporation tax status. Forming an S corporation allows for the limited liability of a corporate shareholder; however income taxes are paid based on a structure of a sole proprietor or a partnership. In an S corporation, all business profits pass through to the owners, who report them on their personal tax returns as with a sole proprietorships, partnerships, and LLCs. An S corporation is not required
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In what ways may a corporation's structure and culture be internal strengths or weaknesses? If a corporation's structure is compatible with present and potential strategies, it can be viewed as an internal corporate strength. If, however, the structure is not compatible with either present or potential strategies, it is a definite weakness and will act to constrain strategy formulation. For example, if a corporation is structured on the basis of function, this may be a weakness if the firm wishes
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Section A 1. Give an account of childraising as presented in the three texts Text 1 Sophia Chau-Rubenfeld tells her story of how her mothers ”tough love” parenting methods raised her into a strong and independent girl who can make her own decisions. 18-year-old Chau-Rubenfeld thinks her rearing was good, and decided to write an official essay back to her mother, where she tells about how good it is to be raised by a so called tiger mom. She admits that her mum was very strict but that is only
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CHAPTER 22 S CORPORATIONS Examination Questions 1. During 2013, an S corporation incurs the following transactions. Net income from operations $60,000 Interest income from savings account 28,000 Long-term capital gain from sale of securities 54,000 Short-term capital loss from sale of securities 44,000 The corporation's passive investment income for 2013 is: a. $28,000. b. $38,000. c. $82,000. d. $142,000.
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English Method A In the first text we are presented with a very strict way of parenting. Sophie Chua-Rubenfeld explains how her Tiger Mom has affected her. The principles of the parenting are you have to do your best at all time. The parents push their children to their fullest potential and only the best is accepted. By being very involved with their children’s activities and having a big influence on their children choices. This method was criticized by many parents by being too robot like
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