Assume that all partnership interests expressed as percentages are those percentages of both profits/losses and capital. Assume that all liabilities are recourse. 6) A. Band C. all individuals, own 309%, 30% and 40%, respectively, of X Corp. A, Band Care all U.S. citizens. Xis a Delaware corporation. X elects to file S Corp. status on February 1, 2020 and states that the election is effective January 1, 2020. (a) A, Band C consent to this election. Is this election valid? (b) Suppose instead that only A and B consent to the election. Would this change your answer? (C) Same as (a) except that C's shares are voting preferred. Would this change your answer?

Assume that all partnership interests expressed as percentages are those percentages of both profits/losses and capital. Assume that all liabilities are recourse. 6) A. Band C. all individuals, own 309%, 30% and 40%, respectively, of X Corp. A, Band Care all U.S. citizens. Xis a Delaware corporation. X elects to file S Corp. status on February 1, 2020 and states that the election is effective January 1, 2020. (a) A, Band C consent to this election. Is this election valid? (b) Suppose instead that only A and B consent to the election. Would this change your answer? (C) Same as (a) except that C's shares are voting preferred. Would this change your answer?

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 18P

See similar textbooks

Similar questions

,
a) The BR Partnership on January 1, 2021 was formed from two corporations, B and R. Neither B nor R is a personal service corporation, and BR is not a tax shelter. BR's gross receipts were $22,000,000, $28,000,000, $34,000,000, and $36,000,000, respectively, for 2021 to 2024. Indicate the methods of accounting available to BR in each tax year. 2021: 2022: 2023: 2024: b) A. B, and C form the ABC Partnership, which does not have a business purpose for using a particular tax year. A uses a calendar year, B uses a fiscal year ending in March, and C uses a fiscal year ending in August. The profit percentages for the partnership is: A, 15%; B, 45%; C, 40%. What year-end must the partnership use?
(please give me Answer within 10-40min.)
X invited Y to a partnership interest in his business. Accounts in the ledger of X on January 1, 2020, before the admission of Y, show the following: Cash-P208,000; Accounts receivable-P460,000; Inventory P1,440,000; Accounts payable-P496,000. It is agreed that for the purpose of establishing the interest of X, the following adjustments shall be made: a) an allowance for bad debts of 8% based on the outstanding accounts receivable is to be established. b) the inventory is to be valued at P1,000,000 c) Prepaid expenses of P72,000 and accrued expenses of P32,000 are to recognized. Y is to invest sufficient cash for a one-third interest in the partnership. How much is the adjusted capital of X?
X invited Y to a partnership interest in his business. Accounts in theledger of X on January 1, 2020, before the admission of Y, show the following: Cash-P208,000; Accounts receivable-P460,000: Inventory P1,440 ,000; Accounts payable-P496,000. It is agreed that for the purpose of establishing the interest of X, the following adjustments shall be made: a) an allowance for bad debts of 8% based on the outstanding accounts receivable is to be established. b) the inventory is to be valued at P1,000,000 c) Prepaid expenses of P72,000 and accrued expenses of P32.000 are to recognized. Y is to invest sufficient cash for a one-third interest in the partnership. How much is the adjusted capital of X?
Partnership(taxation) Assume that all partnership interests expressed as percentages are those percentages of both profits/losses and capital. Assume that all liabilities are recourse. a) Three individuals, C, D, and E, form CDE LLC. CDE LLC does not "check the box" to become a corporation and therefore is treated as a partnership for tax purposes. C contributes land, AB 70 FMV 100 and cash of 20. D contributes inventory (in the hands of both D and CDE), AB 50 FMV 120. E contributes services. In exchange, each partner receives a 1/3 interest in the LLC. What are the consequences to all of the parties? (b) Same as (a) except that C's land is subject to an assumable mortgage of 30 and has a FMV of 130
Please help me with part B
Select the correct answers for the following: If ZZZ Corp., a domestic corporation registered and commenced operations in 2019, the MCIT shall apply when? a. 2021 b. 2022 c. 2023 d. 2024 If Inday, a CPA, established a partnership with Nico, a Certified Internal Auditor, to engaged in business consultancy service, the partnership is: a. Taxable as a corporation b. Is not allowed by law c. A general professional partnership d. Is exempted from taxation as the partners ae the ones liable for the tax With the intention of limiting contact by taxpayers when dealing with the Bureau of Internal Revenue and at the same time save time and money, the Bureau allowed on-line filing of returns and other reports. This is in keeping with: a. Fiscal adequacyb. Administrative Feasibilityc. Uniformity in taxationd. Theoretical justice Professional tax collected by treasurers of LGUs is an example of:a. Privilege taxb. Direct taxc. Income taxd. Specific tax
On April 30, 2021, AAA admits BBB for an interest in his business. On this date, AAA's capital account shows a balance of P 158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized. 5% of the outstanding accounts receivable of AAA amounting to P100,000 is to be recognized as uncollectible. BBB is to be credited with a one-third interest in the partnership and is to invest cash. Determine the amount of cash to be invested by BBB:
On April 30, 2021, AAA admits BBB for an interest in his business. On this date, AAA's capital account shows a balance of P 158,400. The following were agreed upon before the formation of the partnership: Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognized. 5% of the outstanding accounts receivable of AAA amounting to P100,000 is to be recognized as uncollectible. BBB is to be credited with a one-third interest in the partnership and is to invest cash. Determine the amount of cash to be invested by BBB: Р32,950 P55,300 P35,000 P82,950 О
8. Which of the following is true regarding a general partnership? A.Partnership debt must be apportioned based on partnership percentages. B.The partnership must file a certificate of formation with its home state. C.Partners have unlimited liability for partnership debts. D.The partnership must remit federal income taxes on behalf of the partners 11. Which of the following statements is correct regarding a limited liability company's operating agreement? A.It must be filed with a central state agency. B.It must contain the name and address of the limited liability company's registered agent. C.It contains provisions for allocating profits and losses to the owners. D.It allows a limited liability company to legally transact business
At the beginning of the current year, Cameron and Harold formed the CH Partnership by transferring cash and property to the partnership in exchange for a partnership interest, with each having a 50% interest. Specifically, Cameron transferred property having a $35,000 FMV, a $32,000 adjusted basis, and subject to a $5,000 liability, which the partnership assumed. Harold contributed $60,000 cash to the partnership. The partnership also borrowed $35,000 from the bank to use in its operations. All liabilities are recourse for which the partners have an equal economic risk of loss. During the current year, the partnership earned $19,000 of net ordinary income and reinvested this amount in new property. Read the requirements.