Why would smaller partnerships and other businesses for that matter use only the tax basis of accounting, which does not follow GAAP?

Q: What is a tax consequence for a noncorporate shareholder who receives a liquidating distribution…

A: Liquidating distribution is the distribution of the money to the shareholders of the company which…

Q: How do the procedures for closing income summary of a corporation differ from those of a sole…

A: Partnership: It is a form of business where two or more people come together to form a business.…

Q: Which business enterprises pay untaxed profits to owners/partners who then pay the taxes on their…

A: Profits are referred to as the gains which a business earns when it sells the good or provides the…

Q: Which of the following is correct

A: All capital gains are not capital assets. Taxpayers not remits tax to government. Exempt from income…

Q: Which one of the following statements regarding partnership taxation is incorrect? a.Partnership…

A: Partnership Taxation - Under Partnership business partnership account record all the transactions…

Q: Which of the following types of income is subject to the self-employment tax? a.Dividends from stock…

A: First of all we need to understand what is self emploment- In simple words we can say self…

Q: corporations

A: An alternative minimum tax (AMT) is a type of tax that a taxpayer pays .The taxpayer has to pay…

Q: Other than corporations, are there other legal business entities that offer liability protection?…

A: The business can be done through different type of entities. The type of entities will be decided by…

Q: e fo

A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.

Q: Explain why the ultimate tax treatment of Net §1231 Gains is more advantageous for flow through…

A: Partnership-: A partnership is an agreement that takes place amongst two or more people to govern…

Q: What are the benefits of the corporation in comparison with the partnership and proprietorship…

A: A corporation is a separate legal entity owned by the shareholders, who profit from the company's…

Q: From a tax perspective, and disregarding other issues such as limited liability, does it always make…

A: A sole proprietorship is a business owned and controlled only by one person. Because it is a…

Q: 9. Which of the following statements is not correct? A. As a rule, co-ownership is not subject to…

A: solution concept Under NIRC code of 1997 the term corporation has been defined and corporation shall…

Q: Briefly describe the concept of double taxation.  Particularly explain how corporations are subject…

A: Tax is the amount paid by the individuals or entities from the income earned.

Q: Which of the following is correct? 1 It would be cheaper for ABCL to own and pay for the insurance…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: What is an unrecognized tax benefit and how does it affect a company's current income tax expense?

A: The Meaning of Income Tax: FASB defines income tax as a tax on earnings. It is measured in terms of…

Q: With respect to the gross up and tax credit procedures applicable to dividends from taxable Canadian…

A: The meaning of the gross dividend is that it is the part of the company's earnings that is paid to…

Q: A sole proprietorship business is planning to incorporate its business to acquire more capital…

A: Sole proprietorship is a type of enterprise which is owned, controlled and managed by a single…

Q: Determine the deferred tax consequences for temporary differences generated when a business…

A: Deferred Tax: Deferred tax is an amount i.e. computed on the basis of tax liability on the income…

Q: Determine if sole proprietorship, partnership, or corporation. Select all that is applicable between…

A: A partnership is the type of business where two or more partners agree to operate a business and…

Q: How does taxation for the corporate form and taxation for the partnership form diffe

A: A business can be run as various different legal forms. Some of the popular legal form that a…

Q: Corporations are subject to specific corporate tax rates different from those for individuals.  True…

A: Change in tax rate Change in tax rate is a usual practice in corporate world. When the change in tax…

Q: Question: What are the tax consequences to A and to B as a result of these transactions? Be sure to…

A:

Q: When can two or more corporations file a consolidated tax return based from the tax code?

A: A consolidated tax return combines the tax liability of all includible corporations in an associated…

Q: what are the differences between basis period of tax that use for the company purpose and for the…

A: Answer: Basis period is defined as the taxable period for which books are finalized and reported to…

Q: How much is the income tax due under CREATE Law if the taxpayer is a domestic corporation?

A: Under CREATE Law if the taxpayer is a domestic corporation the tax rate will be 25% for large…

Q: Which of the following characteristics best describes a corporation?  a. A business with a single…

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: If a parent and its subsidiary file separate income tax returns, why will the parent frequently have…

A:

Q: How a corporation is different from a partnership in terms of owner, legal status, liabilities,…

A: The distinction between a corporation and a partnership in terms of owner, legal status, liability,…

Q: Unless a “check the box” election is made on Form 8832, a Limited Liability Company (LLC) formed in…

A: Form 8832 : This form is filled by business entities for entity classification election for income…

Q: What is the difference in the tax treatment of interest anddividends paid by a corporation? Does…

A: Introduction: Usually, dividend is nothing but, sharing a portion of profits of the corporation, as…

Q: Which statement is true?  In computing the net taxable income of a corporation availing of the…

A: Optional Standard Deduction (OSD) - It is a maximum deduction of 40% of Gross sales/ gross receipts…

Q: Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such…

A: Internal Revenue Service has classified the businesses as : Sole proprietorship S corporation C…

Q: Which of the following is true?   The MCIT applies only when income is zero or when there is an…

A: Answer: The MCIT applies only when income is zero or when there is an operating loss. The statement…

Q: Why is the allocation of the income tax expense figure between the members of a business combination…

A: The allocation of the income tax expense figure between the members of a business combination is…

Q: Does a sole trader have to register the business with the IRD for tax purposes in NewZealand? –…

A: IRD number is a tax tracking mechanism tool where the government checks up whether their citizen…

Q: A limited liability company (LLC) is taxed like a partnership but provides limited liability for its…

A: A business entity is an organization created by one or more individuals in order to carry out…

Q: what are the similarities between basis period of tax that are used for the company purpose and for…

A: A basic period is the time period fpr which a sole trader or partnership pays tax each year.…

Q: In a limited liability​ company, profits are taxed as a partnership.     True     False

A: A domestic LLC with at least two members is classified as a partnership for federal income tax…

Q: The form of employees compensation ir relevant to tax deductibility of the firm true? or false?

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Which of the following taxpayers cannot claim deductions from gross income?       General…

A: Gross income refers to the income which is earned from the wages, dividends, business income etc. In…

Q: Which of the following statements is true regarding the calculation of a C corporation's taxable…

A: Here discuss about the treatment of taxable income for the C corporation and the details which are…

Q: What are the two particular business structures have evolved in response to liability issues and tax…

A: In response to the issue of liability and tax treatments the two business structures that were…