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Asked Feb 15, 2020
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Chapter 11 - Question 3: (a) Contrast the federal income taxation of a corporation with that of a sole proprietorship and a partnership. (b) Which of the three types of organizations must file a federal income tax return?

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Expert Answer

Step 1

Income tax expense:

 

The expenses which are related to the taxable income of the individuals and business entities for an accounting period, and are recognized by them for the purpose of federal government and state government tax are called as income tax expenses.

Step 2

(a)

 

Sole proprietors and partners in partnership report their share from company’s profit and losses directly on their personal income tax return. Hence, the sole proprietors and partnership can avoid the double taxation. Corporations are subje...

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