If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False

If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 1BCRQ

See similar textbooks

Related questions

Q: Under a corporate liquidation, all unsecured creditors have an equal right to claim available assets…

A: Right to claim available assets of the corporation. 1, Debenture holders 2.Presference creditors 3.…

Q: In every corporate liquidation, which type of credits will not share from the free assets of the…

A: Liquidation is the process of taking a business to its end by settling the claims of creditors…

Q: In an S Corporation are the unit holders liable for busin

A: Yes, they are liable for business losses too if they fulfill these requirements.

Q: What is the legal relationship of a sole proprietorship to its owner? A. The owner and the sole…

A: Sole proprietorship is a business structure where an individual owns and operates the business, with…

Q: a corporation whose only source of income is rental income will not be subject to the personal…

A: The Internal Revenue Agency (IRS) levies a tax known as the personal holding company penalty tax on…

Q: ected by some bilities

A: An S corporation shareholder’s basis may be affected by some or all business liabilities.

Q: Corporations disclose restrictions of retained earnings on the balance sheet as a deduction from…

A: Restricted retained earnings refers to that amount of a company's retained earnings that are not…

Q: The creditors of corporations are equally liable for the debts of the firm. a. True b. Fals

A: A corporation is a entity formed under a law with limited liability and the share holders are made…

Q: How are obligations (other than deferred income taxes) disclosed in the case of a corporation that…

A: The answer :

Q: The shareholder is usually liable for the corporation’s debts.

A: Shareholders refer to a person or entity who is owning shares in the company’s stock. One…

Q: What is the principle under the Corporation Law that allows the court to identify the erring…

A: Corporation means a large company and group of companies authorized to act as a single entity.

Q: What type of taxpayers (entities) are aﬀected by the passive loss rules? What is the signiﬁcance of…

A: The passive loss rules affect various types of taxpayers, including individuals, estates, trusts,…

Q: Please no written by hand solutions A negotiable instrument that gives the owner a proportionate…

A: A negotiable instrument is a document or piece of paper that represents a legally enforceable right…

Q: An individual provides accounting services to a corporation in exchange for stock. the shareholder…

A: Recognition of revenue - is an important aspect of accounting of revenue to be presented during the…

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: Which of the following is not primary reason why corporation invest in debt . Select one: a. they…

A: There are several reasons why corporate invest in debts or equity. They mainly includes: They have…

Q: Why might the decision to own rather than lease real estate have an unfavorable effect on the…

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

Q: What is the effect on a corporation when it goes bankrupt?

A: Bankrupt happens when the corporation has insufficient funds to pay off the liability (or when it is…

Q: Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts…

A: Corporation has separate legal entity. This means the corporation is separate from its owners. Thus,…

Q: A corporation may not deduct dividends paid to shareholders but is permitted to deduct reasonable…

A: Compensation Compensation refers to payment for personal services which includes wages, salaries,…

Q: to be a personal holding company, the corporation must have been formed or availed of for the…

A: A PHC is a type of corporation that derives its income primarily from passive sources such as…

Q: Which of the following statements is false? A) In bankruptcy, management is given the opportunity…

Q: When a corporation is dissolved due to fraud, graft, and corruption, can innocent employees and…

A: Liabilities are referred, when the money is borrowed and there is obligation to pay that sum of…

Q: A corporation incurred liabilities to its suppliers. The suppliers filed a case against the board of…

A: Lets understand the basics. Company or corporation kind of structure are structure in which company…

Q: How would the transactions be reconciled if the bad debt allowance was changed to a bad debt…

A: Bad debts written off is an expense that is treated as irrecoverable and hence debited to profit and…

Q: True or false: The corporation, and not the owners, are viewed as owning the resources and as owing…

A: Question: The corporation, not the owners, are viewed as owing the resources and as owing the debts…

Q: If a corporation files bankruptcy and is liquidated, who should get paid first: the corporation’s…

A: Bondholder: A bondholder is an investor of bonds in the issuer's firm. The issuer pays the…

Q: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation. 2.…

A: 1. It refers to the capital of a corporation that cannot be withdrawn until final liquidation.…

Q: Which of the following is true about this statement: "In a sole proprietorship, the owner's personal…

A: The question is based on the concept of Financial Accounting. Sole proprietorship is a type of…

Question

If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False
The owners of a corporation are personally responsible for the debts of the corporation. True or False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Why would a creditor of a corporation consider suing shareholders of that corporation for a debt owed by the corporation to the creditor?A. The corporation has gone out of business.B. The debt is for a lot of money.C. The shareholder is usually liable for the corporation’s debts.D. The creditor had a contract with the corporation.
What type of taxpayers (entities) are aﬀected by the passive loss rules? What is the signiﬁcance of a closely held corporation with regard to the deductibility of passive losses?
True or false: The corporation, and not the owners, are viewed as owning the resources and as owing the debts of the business. O True O False
How would the transactions be reconciled if the bad debt allowance was changed to a bad debt write-off but the corporation was able to recover the funds?
How are obligations (other than deferred income taxes) disclosed in the case of a corporation that has emerged from bankruptcy?
Which of the following is not deductible from business income? Group of answer choices Casual losses on properties connected in the conduct of trade or business Loss of business property due to embezzlement Loss on exchange of capital assets NOLCO
A corporation is recognized as a legal person. True False
In a liquidation proceeding, if the proceeds on the realization of an asset exceed the lien against that asset, the excess is assigned to*a. the holder of the lien.b. meet the claims of the unsecured creditors.c. the stockholders of the corporation.d. other lien holders whose assets will not realize a sufficient amount to cover their liens.
Corporations disclose restrictions of retained earnings on the balance sheet as a deduction from retained earnings. in the notes to the financial statements. as a liability on the balance sheet. on a voluntary basis; it is not required.
Under a corporate liquidation, all unsecured creditors have an equal right to claim available assets of the corporation. True or False
A corporation may not deduct dividends paid to shareholders but is permitted to deduct reasonable compensation? True or False
In an S Corporation are the unit holders liable for business losses too?