Lect the best answer. hich of the following statements regarding various entities is true? O D O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited part Partnerships are taxpaying entities, because tax attributes pass through to the individ partnors D.

Lect the best answer. hich of the following statements regarding various entities is true? O D O A. A business entity with only one owner is classified as a corporation or is disregarded. B. A disadvantage of a pass-through entity is double taxation. C. By default, an eligible entity that has a single member will be treated as a limited part Partnerships are taxpaying entities, because tax attributes pass through to the individ partnors D.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Select the best answer. Which of the following statements regarding various entities is true? O A. A business entity with only one owner is classified as a corporation or is disregarded. O B. A disadvantage of a pass-through entity is double taxation. O C. By default, an eligible entity that has a single member will be treated as a limited partnership Partnerships are taxpaying entities, because tax attributes pass through to the individual partners. O D. Submit Answers 100% Complete
Who is eligible to take the Section 199A qualified business income deduction? 1. C corporation on Form 1120 II. S corporation on Form 1120S III. Partnership on Form 1065 IV. Sole proprietorship on Schedule C V. Individual taxpayer on Form 1040 1 I, II, III II, III, IV V
Which of the following entities is subject to double taxation? A) S Corporation B) Sole Proprietorship CI C Corporation D) Limited Liability Partnership (LLP)
Which of the following legal entities are generally classified as C corporations for tax purposes? Multiple Choice Limited liability companies. S corporations. Limited partnerships. Sole proprietorships. None of the choices is correct.
Partnerships: a.Are not taxable entities. b.Are taxed in the same manner as individuals. c.File tax returns on Form 1041. d.File tax returns on Form 1120.
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Check my answer. Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such an LLC be taxed? Under the check-the-box Regulations, an unincorporated entity with only one owner can file as an LLC and would be classified as a disregarded entity. LLC’s do not typically pay federal income taxes, but the LLC would need to report and pay employment and excise taxes.
Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts in its own name. Ob. It may sue and be sued. c. The acts of its owners bind the corporation. Od. It may buy, own, and sell property.
26. The advantages of an LLC include all of the following except: A. Members are protected from personal liability for business decisions B. Sharing of profits C. Up to the members to decide who has earned what percentage of the profits or losses D. Entire net income of the LLC is subject to taxes E. Less record keeping compared to a Corporation
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Select the best term for each definition below. Definitions Terms a. Shareholders can lose no more than the amount they invest in the company. b. Corporate earnings are taxed twice—at the corporate level and individual shareholder level. c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation. d. Traces the line of authority within the corporation. e. Allows for legal treatment as a corporation, but tax treatment as a partnership. f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE). g. The first time a corporation issues stock to the public. h. Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.
Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLC