Indicate whether the statement describes a corporation, a soleproprietorship, a partnership or a limited liability company (LLC).Igwe and Briggs own Seedy Packaging, a shippingservice. Both gentlemen are personally liable for theChoose.debts of the business.Jiffy Auto & Lube is a separate legal entity from itsChoose.owner, but it does not pay a business income tax.Ownership of Amazon Company is divided into 1,000shares of stock. The company pays a business incomeChoose.tax.Udeh and Opechi own Financial Services, Inc. which paysa business income tax. Udeh and Opechi do not haveChoose.personal responsibility for the debit of FinancialServices, Inc.ITT Services does not have separate legal existenceChoose.apart from the one person who owns it,

Sole Proprietorship Business is owned by a single person and he is personally liable for the debts…

Indicate whether the statement describes a corporation, a sole proprietorship, a partnership or a limited liability company (LLC). Igwe and Briggs own Seedy Packaging, a shipping service. Both gentlemen are personally liable for the Choose. debts of the business. Jiffy Auto & Lube is a separate legal entity from its owner, but it does not pay a business income tax. Choose. Ownership of Amazon Company is divided into 1,000 shares of stock. The company pays a business income Choose. tax. Udeh and Opechi own Financial Services, Inc. which pays a business income tax. Udeh and Opechi do not have Choose. personal responsibility for the debit of Financial Services, Inc. ITT Services does not have separate legal existence Choose. apart from the one person who owns it,

Indicate whether the statement describes a corporation, a sole proprietorship, a partnership or a limited liability company (LLC). Igwe and Briggs own Seedy Packaging, a shipping service. Both gentlemen are personally liable for the Choose. debts of the business. Jiffy Auto & Lube is a separate legal entity from its owner, but it does not pay a business income tax. Choose. Ownership of Amazon Company is divided into 1,000 shares of stock. The company pays a business income Choose. tax. Udeh and Opechi own Financial Services, Inc. which pays a business income tax. Udeh and Opechi do not have Choose. personal responsibility for the debit of Financial Services, Inc. ITT Services does not have separate legal existence Choose. apart from the one person who owns it,

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter11: The Corporate Income Tax

Section: Chapter Questions

Problem 18MCQ

See similar textbooks

Similar questions

The following describe several different business organizations. Determine whether each description bestrefers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax.
Danielle, a sole proprietor, was engaged in a service business and reported her income on a cash basis. Later, she incorporates her business and transfers the assets of the business to the corporation in return for all the stock in the corporation plus the corporation's assumption of the liabilities of her proprietorship. All the receivables and the unpaid trade payables are transferred to the newly formed corporation. The assets of the proprietorship had a basis of $105,000 and fair market value of $300,000. The trade accounts payable totaled $25,000. There was a note payable to the bank in the amount of $95,000 that the corporation assumes. The note was issued for the purchase of computers and other business equipment. a.Danielle has a basis of $10,000 in the stock she receives. b.The basis of the assets to the corporation is $300,000. c.Danielle has a zero basis in the stock she receives. d.Danielle has a gain on the transfer of $15,000.
T owns a sole proprietorship, and L is the sole shareholder in a C corporation. In the current year, both businesses make a net profit of $60,000. Neither business distributes any funds to the owners in the year. For the current year, T must report $60,000 of income on his individual return, but L is not required to report any income from the corporation on her individual return. Question 1 options: True False
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a... Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC records net income of $287,000 after deducting Robert's $86,100 salary. In addition to his compensation, ABC pays Robert dividends of $200,000. a. What is Robert's qualified business income? $ b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $176,100?
Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: PMV Adjusted Bais Appreciation Cash $14,000 $14,000 Receivables $19,100 $19,100 Building $130,000 $65,000 $65,000 Land $247,500 $82,500 $165,000 Total $410,600 $180,600 $230,000 Payables $23,900 $23,900 Mortage* 138,000 $138,000 Total $161,900 $161,900 *The mortage is attached to the building and land Ernesto was asking for $535,450 for the company. His tax basis is in the…
Which of the following taxpayers may claim a deduction for qualified business income? a. A driver for Uber or Lyft. b. A vetenarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food and supplies and from the boarding of animals. c. A CPA operating as an LLC taxed as a sole proprietorship. The CPA is single and has taxable income of $150,000. d. Same as part(c), except the CPA has taxable income of $200,000 e. A real estate salesperson. f. A pet sitter/ dog walker. g. A sole proprietor software developer. h. An individual wage earner who derives $60,000 of rental income from a duplex she owns.
Three owners join together to form ABC, INC., which properly elects to be taxed as a C corporation. Shareholder A contributes cash of $10,000 and a collection of jewelry display cases to be placed in the jewelry store operated by the C corporation. The jewelry display cases have a basis in A’s hands of $112,000, and a fair market value of $81,000. B contributes $10,000 in cash and jewelry inventory having a basis in B’s hands of $35,000 and a fair market value of $81,000. C contributes inventory having a basis in C’s hands of $120,000 and a fair market value of $96,000. Since each of the three of them have agreed to be equal shareholders, it was determined that it was fair to distributed $5,000 in cash to Shareholder C because her initial contribution had a fair market value of $5,000 more than the contribution of either A or B. What is the balance in A’s capital account immediately following her contribution?
Three owners join together to form ABC, INC., which properly elects to be taxed as a C corporation. Shareholder A contributes cash of $10,000 and a collection of jewelry display cases to be placed in the jewelry store operated by the C corporation. The jewelry display cases have a basis in A’s hands of $112,000, and a fair market value of $81,000. B contributes $10,000 in cash and jewelry inventory having a basis in B’s hands of $35,000 and a fair market value of $81,000. C contributes inventory having a basis in C’s hands of $120,000 and a fair market value of $96,000. Since each of the three of them have agreed to be equal shareholders, it was determined that it was fair to distributed $5,000 in cash to Shareholder C because her initial contribution had a fair market value of $5,000 more than the contribution of either A or B. What is the balance in B’s capital account immediately following his contribution?