QWIK Software Company has assets of $850,000 and liabilities of $460,000. a. a. Prepare the ownership equity section of QWIKS balance sheet under each of the following independent assumption: 1. The business is organized as a sole proprietorship. Owned by Mr. khurram ali. 2. The business is organized as a partnership owned by Mr. khurram ali. And Mr.Bilal Ahamd. Mr. khurram ali's equity amount to $240,000. 3. The business is a corporation with 25 stockholder, each of whom originally invested $10,000 in exchange for shares of the company capital stock the remainder of the stock holder's equity has resulted from profitable operation of the business. b. Assume that you are a loan officer at security bank. QWIK has applied to your bank for a large loan to finance the development of new products is it likely to matter to your whether QWIK is organized as a sole proprietorship, a partnership, or a corporation? Explain?

QWIK Software Company has assets of $850,000 and liabilities of $460,000. a. a. Prepare the ownership equity section of QWIKS balance sheet under each of the following independent assumption: 1. The business is organized as a sole proprietorship. Owned by Mr. khurram ali. 2. The business is organized as a partnership owned by Mr. khurram ali. And Mr.Bilal Ahamd. Mr. khurram ali's equity amount to $240,000. 3. The business is a corporation with 25 stockholder, each of whom originally invested $10,000 in exchange for shares of the company capital stock the remainder of the stock holder's equity has resulted from profitable operation of the business. b. Assume that you are a loan officer at security bank. QWIK has applied to your bank for a large loan to finance the development of new products is it likely to matter to your whether QWIK is organized as a sole proprietorship, a partnership, or a corporation? Explain?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 55P

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