The maximum life of a corporation as provided for by the Revised Corporation Code of the Philippines is 50 years and renewable thereafter, thus, making its life indefinite. True False
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- dWhich of the following does NOT apply to an LLC? (a) The owner's assets are sheltered from personal liability. (b) They are limited to 100 members. (c) They choose how to be taxed. (d) They can choose to be a pass-through entity.. Ramon R. Yap is the holder of a regular position of Department Manager of the National DevelopmentCompany (NDC), a government-owned and controlled corporation with the original charter. He wasappointed by the Board of Directors Manila Gas Corporation (MGC), a subsidiary of NDC, Vice-Presidentfor Finance, while remaining as a regular employee of NDC. The additional employment entitled him tohonoraria equivalent to 50% of his basic salary at NDC and various allowances attached to the office.In the course of the regular audit, the Corporate Auditor, MGC issued the following notices of disallowancesagainst Mr. Ramon R. Yap:Notice ofDisallowanceDate Amount NatureND 99- 03(98) MGC 03/26 P3,330.00 Subscription to National Geographic and Reader'sDigestND 99-10(98) MGC 04/12 2,848.00 Car maintenance allowance1,500.00 Annual fee of VISA cardND 99-12(98) MGC 04/12 789.00 Representation expense on a SundayND 99-16(98) MGC 09/09 4,180.56 Fellowship with other PCA club Members on SundayND…
- In the liquidation of a limited partnership, which of the following credits shall be paid last? Those owning to partners for their share in profits. Those owning to partners other than capital and profits. Those owning to partners for their capital contribution. Those owning to third persons. Clear selection After the date of corporate dissolution, what is the maximum period allowed by law to a dissolved corporation to complete its liquidation process? 2 years 4 years 1 year 3 years Clear selection In case of admission of a new partner in an existing partnership through investment to the partnership, which of the following scenario will result to bonus to new partner and asset revaluation? The total contributed capital of all partners is more than the total agreed capital of new partnership while the total agreed capital of old partners is equal to the amount they contributed. The total contributed capital of all partners is less than the total agreed capital of new partnership while…7. Which of the following provisions contained in an otherwise negotiable instrument will cause it to be nonnegotiable? a. It is payable in Mexican pesos. b. It contains an unrestricted acceleration clause. c. It grants to the holder an option to purchase land. d. It is limited to payment out of the entire assets of a partnership. 17. Industrial Factors, Inc., discounted a $4,000 promissory note, payable in two years, for $3,000. It paid $1,000 initially and promised to pay the balance ($2,000) within 30 days. Industrial paid the balance within the 30 days, but before doing so learned that the note had been obtained originally by fraudulent misrepresentation in connection with the sale of land which induced the maker to issue the note. For what amount will Industrial qualify as a holder in due course? a. None because the 25% discount is presumptive or prima facie evidence that Industrial is not a holder in due course. b. $1,000. c. $3,000. d. $4,000.Dhapa
- Garth, Corporation and Waite Inc. are privately held entities with a September 30 fiscal year end. Garth Corporation and Waite Inc. (a competitor of Garth) have been engaged in long-standing litigation over trademark infringement matter. The following is a summary of specific events that have taken place related to this matter: In May, 2020, Garth filed a claim against Waite for trademark infringement. The case is scheduled to be heard by a judge in December 2021. For the year ended September 30th, 2021, attorneys for Waite advised that they strongly believed that Waite would not be successful in the case. The attorneys stated that this loss was probable and represented that the estimate of the settlement would be in the range of $5 million to $10 million. Garth’s attorneys have advised Garth Corporation that they also agree with Waite’s attorneys’ assessment of the likelihood of their success and the amount of the probable settlement. Based upon this advice from the attorneys…Partnerships and S corporations may elect a year that does not end on December 31 if: a. A business purpose for the year can be demonstrated. b. The entity retains the same year as was used for fiscal year ending in 1987 , provided the entity agrees to make required tax payments. c. The partnership's or S corporation's year results in a deferral of not more than three months' income and the entity agrees to make required tax payments. d. a and c only e. All of the aboveOn January 1, 20x1, Entity A acquires all the assets and liabilities of Entity B for P2,000,000. Entity B's identifiable assets and liabilities have fair values of P4,000,000 and P2,200,000, respectively. Additional information: Prior to the business combination, Entity B is a franchisee of Entity A. The franchise agreement has a remaining term of 5 years, which either party can terminate without any penalty. The franchise agreement has a fair value of P300,000, of which P100,000 is the "at-market" value. The "off-market" value is favorable to Entity A, but unfavorable to Entity B. Entity A's related 'contract liability' account has a carrying amount of P230,000, while Entity B's related 'franchise' account has a carrying amount of P150,000. Requirement: Compute for the goodwill.
- Presley Corp., a calendar-year corporation, was formed four years ago by its sole shareholder, Smith, who has always operated it as a C corporation. However, at the beginning of 2020, Smith made a qualifying S election for Presley Corp., effective January 1. Presley Corp. reported $140,000 of C corporation earnings and profits on the effective date of the S election. In 2020 (its first S corporation year), Presley Corp. reported business income of $100,000. Smith’s basis in his Presley Corp. stock at the beginning of 2020 was $30,000. What are the amount and character of gain Smith must recognize on the following distributions scenarios, and what is his basis in his Presley Corp. stock at the end of the year? Smith received a $80,000 distribution from Presley Corp. at the end of the year. Smith received a $260,000 distribution from Presley Corp. at the end of the year. Smith received a $300,000 distribution from Presley Corp. at the end of the year.0 Required information [The following information applies to the questions displayed below.) Miley decided to terminate the S corporation election of her solely owned corporation on October 17, 2019 (effective immediately), in preparation for taking it public. Miley had previously elected S corporation status on January 1, 2018. At the time of the election, the corporation had an accumulated adjustments account balance of $165,000 and $462,500 of accumulated E&P from prior C corporation years, and Miley had a basis in her S corporation stock of $146,250. During 2020, Miley's corporation reported $0 taxable income or loss. Also, during 2020 the corporation made distributions to Miley of $87,500 and $65,000. How are these distributions taxed to Miley assuming the following? (Leave no answer blank. Enter zero if applicable. Enter N/A if not applicable.) a. Both distributions are in cash. The first was paid on June 15, 2020, and the second was paid on November 15, 2020. June 15 November 15…For the following organizations, determine its UBTI and any related UBIT. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profit- able, In Care hires a manager and several employees to run the entity. For the current year, StopBy’s profit is $640,000. All of this amount is distributed by StopBy to In Care to use in carrying out its exempt mission.
