Mr. Ang holds a position as a director both in Kemerlu Co. and Eklavu Co. therefore Kemerlu and Eklavu are related parties. TRUE OR FALSE
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Mr. Ang holds a position as a director both in Kemerlu Co. and Eklavu Co. therefore Kemerlu and Eklavu are related parties.
TRUE OR FALSE
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- c. What amount of gain or loss does Ernesto recognize if the transaction is structured as a Type A merger? d. What is Ernesto’s tax basis in the STS stock he receives in the exchange?Select the best answer. Which of the following statements regarding the characteristics of various entities is false? O O B. A general partnership is a pass-through entity. The income of a sole proprietorship is taxed to its owner because it has no separate legal entity from its owner. D. State taxability for S corporations makes no distinction between S and C corporations. A. A C corporation enjoys no special tax status. O C. O Question Q 13 Submit Answers 100% CompleteEdward Seymour is a financial consultant to Cornish Inc., a real estate syndicate. Cornish Inc. finances and develops commercial real estate (office buildings). The completed projects are then sold as limited partnership interest to individual investors. The syndicate makes a profit on the sale of these partnership interests. Edward provides financial information for the offering projects, which is a document that provides the financial and legal details of the limited partnership offerings. In one of the projects, the bank has financed the construction of a commercial office building at a rate of 10% for the first four years, after which time the rate jumps to 15% of the mortgage. The interest costs are one of the major ongoing costs of a real estate project. Edward has reported prominently in the prospectus that the break-even occupancy for the first four years is 65%. This is the amount of office space that must be leased to cover and general upkeep costs over the first four…
- Identify the false statement: A. Dividends earned by a resident foreign corporation from a domestic corporation is inter-corporate dividend exempt from income tax. B. Dividends earned by a domestic corporation from a foreign source is inter-corporate dividend exempt from income tax, with certain conditions. C. Dividends earned by a domestic corporation from another domestic corporation is inter-corporate dividend exempt from income tax. D. A corporation may be formed by one person only. E. Every partnership shall be taxed in the same manner as a corporation. F. The share of a partner in the income of a professional partnership shall be subject to regular income tax. G. None of the above.Ted Hughes owns a plumbing business,which is run as a company called "Hughes Plumbing Pty Limited".Which one of the following is correct: A.None of the other answers are correct B.Ted Hughes and Hughes Plumbing Pty Limited are seperate legal entities from both an accounting and legal perspective C.Ted Hughes and Hughes Plumbing Pty Limited are not seperate entities,from either an accounting and legal perspective D.Ted Hughes and Hughes Plumbing Pty Limited RE separate entities from an accounting perspective,but not from a legal perspective E.Ted Hughes and Hughes Plumbing Pty Limited are separate entities from a legal perspective,but not from an accounting perspectiveEllie and Linda are equal owners in Otter Enterprises, a calendar year business. Ellie has a basis in Otter Enterprises of $80,000 at the beginning of the year. Linda has a basis in Otter Enterprises of $60,000 at the beginning of the year. Assume that Otter Enterprises has no debt. Otter Enterprises has $320,000 of gross income and $210,000 of operating expenses. In addition, Otter has a long-term capital gain of $15,000 and makes distributions to Ellie and Linda of $25,000 each. Required: Discuss the impact of this information on the taxable income of Otter, Ellie, and Linda if Otter is:
- Which of the following is not a taxable corporation? A. Ryzelle, Ihanelle and Kiana agreed to contribute money into a common fund to engage in the business of buying and selling consumer goods. Their total investment amounts to P 300,000 and they did not bother to register their business with the DTI and the SEC. B. William, Robert and Roel, all certified public accountants, agreed to contribute their money, property and industry to a common fund with the sole intention of exercising their common profession. They have registered with the SEC. C. Hogwarts Bus Company and Angry Bird Bus Company owns separate franchises to operate a public utility covering the area of Northern Luzon. To achieve maximum efficiency in utilizing their assets and to avoid negative effects of competition, the two companies agreed to pool their resources together and operate as a single company. D. Ester and Rodrigo, lawyers and certified public accountant, respectively, agreed to contribute their money,…Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Corporate income that is distributed to shareholders is usually taxed twice. ? Corporations are often subject to fewer regulations than partnerships. ? The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the makeup of directors. ? It has many of the same rights as an individual. ? It does not end with the death of an owner. ?Stockholders are expected to hire and fire key executives. ? The president and vice presidents choose the board of directors.AusFarm Limited consolidated the farm business in 1995. Until then, some of the business had been operated by William Wales, Henry Windsor and Catherine Wales, William's wife, as a partnership. REQUIRED: a. What are some of the key differences between a partnership and a company, as a vehicle for operating a business? b. What type of company is AusFarm Limited? Distinguish Public and Private Company. Provide 3 advantages that a Public Company have over a private company. Give Reasons for your answer.
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.2. options are Partnership Sole propitership LLC CorparationOne of the cofounders of Project Repat is no longer with the company, although he retains a small ownership stake. What complications might this change have caused if Project Repat was set up as a partnership rather than a corporation?