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South-Western Federal Taxation - Chapter 17- Corporations Test Bank Solution Manual (Graded A+) $7.99   Add to cart

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South-Western Federal Taxation - Chapter 17- Corporations Test Bank Solution Manual (Graded A+)

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South-Western Federal Taxation - Chapter 17- Corporations Test Bank Solution Manual (Graded A+) sole proprietorship - Answers - business is not a separate entity - unlimited liability, personal assets at risk - income is taxable to individual on Sch C/1040 - income/expenses retain their charact...

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  • November 13, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • South-Western Federal Taxation - Chapter 17- Corpo
  • South-Western Federal Taxation - Chapter 17- Corpo
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South-Western Federal Taxation - Chapter 17- Corporations Test Bank Solution Manual (Graded A+)

sole proprietorship - Answers - business is not a separate entity

- unlimited liability, personal assets at risk

- income is taxable to individual on Sch C/1040

- income/expenses retain their character/nature (e.g. ordinary/capital gains, etc.)

partnerships - Answers - unlimited liability, partners' personal assets at risk

- business reports income on a Form 1065

- not subject to Federal income tax

- must file separately

- most income/expenses aggregated on 1065

- some separately stated items include interest, dividend income, and long-term capital gains

- partnership income/loss flows to partners and is taxable at individual level

S corporations - Answers - governed by Subchapter S of IRC

- files on Form 1120

- generally don't pay Federal income tax

- similar to partnerships, income/loss flows to shareholders

C corporations - Answers - governed by Subchapter C of IRC

- separate business entity

- files on Form 1120

- subject to entity-level Federal income tax

- results in double-taxation effect

- dividends distributed to shareholders are taxable at the individual level

- easy to raise large amounts of capital through widespread stock ownership

regular corporations - Answers C corporations are considered regular corporations

limited liability company (LLC) - Answers - avoids unlimited liability exposure

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