11. There is an effect of a payment of dividend whenfringe benefits are received by an employee from the company.promissory notes are paid to the employees for the services he hadrendered to his employer.a creditor condones the debt of a corporation.a corporation condones the debt of its stockholders.a.С.d.CS Scanned with CamScanner

The dividend is the distribution of income among the shareholders of the company. It is paid in the…

Answered: 11. There is an effect of a payment of…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 33P

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Similar questions

When corporations issue stock in exchange for professional services, what account(s) should be debited and what account(s) should be credited?
The purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to taxable income. Summarize the dividends received deduction calculation. List the officers of the corporation and their compensation. Calculate the net operating loss deduction.
LO.3, 4, 5 Contrast the income taxation of individuals and C corporations as to: a. Alternative minimum tax. b. Dividend income. c. Qualified business income deduction of 20 percent. d. Use of the cash method of accounting. e. Accounting period used for tax purposes. f. Applicable tax rates. g. Due date of the tax return.
Chelsea Company is a sole proprietorship. Ashley, Incorporated is a corporation. Which company would report stockholders equity and retained earnings and not simply owners equity? Why? What is the difference between these accounts?
18. The following are examples of corporate expenses deductible from gross income, except one a. Expenses paid to an advertising firm in order to create a favorable image for the corporation b. Contribution to drum up business like contribution of softdrinks to barrio fiesta c. Premiums on life insurance covering the life of an employee if the beneficiary is his heir d. Representation expenses designed to promote business
I- Interest paid on preferred stock is deductible from gross income of the paying corporation.II- A capital expenditure usually benefits more than one accounting period and is deductible from gross income in the year it is paid or incurred.* True; true False; true true; false false; false Which of the following is true?* Payments which constitute bribes, kickbacks and others of similar nature which are necessary to realized profits are allowed as deductions from gross income. The taxes which are deductible from gross income include the taxes, interest and penalties incident to tax delinquency. Deductions are amounts allowed by the Tax Code to be deducted from gross income arrive at the income tax liability of a taxpayer. Losses from wagering transactions shall be allowed only up the extent of the gains from such transactions. Which statement is correct?* The compensation income of managerial or supervisory employees is subject to fringe benefit tax. The taxable fringe benefits…
Match the terms to the definition: Receive stipulated dividends, get paid first when there are profits, no say in corporate decisions. Are creditors not owners, get paid first regardless of profit or not, if company goes bankrupt they get paid first Last to get paid, able to vote in matters concerning the corporation A. Common Stock B. Preferred StockC. Bonds
In corporations the stockholders are equally liable for the debts of the firm. a. True b. False
1. Which of the following does not affect retained earnings? Choices; Actual payment/distribution of dividends. Board of directors’ decision relating to recapitalization. Adjustment of prior period’s profits Profit of a corporation during the period. 2. The following are characteristics of a corporation except Choices; It is an artificial being It has right of succession Unlimited Liability It is created by operation of law
Retained earnings refer to the portion of a corporation's profits that are paid out to shareholders. a. True b. False

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