Supposed CCS was formed with Nicole Johnson, Sarah Walker, and Chanzz Inc., a legal corporation owned by Chance Armstrong, as shareholders. Chance Armstrong is a U.S. resident but a French citizen. His mother has recently been diagnosed with a terminal illness, and Chance has decided to move back to France to take care of his mother and her affairs. He anticipates that he will live in France for several years and that he will no longer be considered a U.S. resident. Questions to consider include the following: If you were Sarah or Nicole, how would you react to Chance’s decision to move? Would you ignore the impact it may have on CCS’s S Corporation status? Would you pressure Chance to sell his CC stock to you? What are the consequences if Sarah and Nicole ignore the impact on CCS's S corporation status? Would this action violate tax law? Would this action violate ethical standards?
Supposed CCS was formed with Nicole Johnson, Sarah Walker, and Chanzz Inc., a legal corporation owned by Chance Armstrong, as shareholders. Chance Armstrong is a U.S. resident but a French citizen. His mother has recently been diagnosed with a terminal illness, and Chance has decided to move back to France to take care of his mother and her affairs. He anticipates that he will live in France for several years and that he will no longer be considered a U.S. resident. Questions to consider include the following: If you were Sarah or Nicole, how would you react to Chance’s decision to move? Would you ignore the impact it may have on CCS’s S Corporation status? Would you pressure Chance to sell his CC stock to you? What are the consequences if Sarah and Nicole ignore the impact on CCS's S corporation status? Would this action violate tax law? Would this action violate ethical standards?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Supposed CCS was formed with Nicole Johnson, Sarah Walker, and Chanzz Inc., a legal corporation owned by Chance Armstrong, as shareholders. Chance Armstrong is a U.S. resident but a French citizen. His mother has recently been diagnosed with a terminal illness, and Chance has decided to move back to France to take care of his mother and her affairs. He anticipates that he will live in France for several years and that he will no longer be considered a U.S. resident.
Questions to consider include the following:
If you were Sarah or Nicole, how would you react to Chance’s decision to move?
Would you ignore the impact it may have on CCS’s S Corporation status?
Would you pressure Chance to sell his CC stock to you?
What are the consequences if Sarah and Nicole ignore the impact on CCS's S corporation status? Would this action violate tax law? Would this action violate ethical standards?
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