When a business ceases to operate and its inventories are disposed of a gain on the inventories will be treated as a capital gain unless an election is made by the selling taxpayer True or False 2.  When a business ceases to operate and its accounts receivable are disposed of with the other business assets any loss on the receivables

Q: Which one of the following statements is false? Group of answer choices A capital asset may be an…

A: In general, an ordinary asset is an asset that is connected to the trade or business of the…

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: Recognition of sales of property at a gain may be disallowed under the related party rules of the…

A: We would answer  this question as per the Internal Revenue Code (IRC)

Q: Which of the following is false regarding a sole proprietorship? The owner has unlimited personal…

A: There are several forms of business organisation, in which businesses can be run and maintained.…

Q: The built-in loss limitation in a complete liquidation does not apply to losses attributable to…

A: The built-in loss refers to the amount of cost incurred being more than the total revenue earned…

Q: How could failing to collect sales tax result in a larger tax liability for a business than failing…

A: Taxable amount is the measurement of the amount of tax that needs to be paid by an individual or a…

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: Which of the following statements is false? Multiple Choice O The value of an enterprise should not…

A: d. Cash flow should be calculated on an after-tax basis:Explanation: This statement is True. Cash…

Q: Which of the following accounting treatments for costs related to business combination is incorrect?…

A: Costs associated to the establishment of the newly created corporation, also known as…

Q: An associated person of a broker-dealer may only share directly or indirectly in the profit or…

A: An associated person of a broker- dealer may only share directly or indirectly in the profit or loss…

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: The faster an asset can be depreciated, according to IRS rules, the greater a company's after-tax…

A: Depreciation is a process in which, when a business buys or develops an asset, the tax treatment for…

Q: It is legal and ethical to use one method of deprecia method on the company's financial statements.

A: True, it is legal and ethical to use one method of depreciation for taxes and another method on the…

Q: An item that is considered a nondeductible item in taxable income is recognizing estimated bad debts…

A: Non deductible item in taxable income is an item which will not be considered for deduction while…

Q: The accounting net income of a company are not necessarily the same amount as the net income for tax…

A: The accounting net income of a company are not necessarily the same amount aa the net income for tax…

Q: In Modigliani and Miller Proposition II:   A. bankruptcy costs and taxes are ignored   B.…

A: Modigliani and Miller preposition in business says that there will be no change in value of the…

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: A business organized as a corporation a. is not a separate legal entity in most states. b. requires…

A: Business organizations are the entities that are formed for the purpose of running the business.…

Q: The most that the owner of a sole proprietorship can lose, as a result of business debts or…

A: A sole proprietorship is a form of business that is operated and controlled by a company, individual…

Q: A taxpayer who acquired property in a related party transaction where a loss is realized cannot use…

A: Related-party transaction refers to those transactions that reflects a deal or arrangement made…

Q: A net operating loss occurs when tax-deductible expenses exceed taxable revenues. Tax laws permit…

A: Definition:   Net Operating Loss Carryforward: The net operating loss is considered a negative…

Q: A sole trader business owner: A sole trader business owner: is personally liable for all debts…

A: A sole proprietorship is a nature of business where an individual, known as the sole proprietor,…

Q: 5) How should companies appropriately account for the tax benefit due to a loss carryforward? ( O…

A: When a company suffers net operating loss in the current year, it can set off this loss against the…

Q: Which of the following is true (mark all that apply): A. Unfavorable book-tax differences cause…

A: In taxation, book differences play an important role in adjusting the taxable income and therefore…

Q: Te election to expenses is not permitted where listed property does not meet the qualified business…

A: Qualified business use refers to any use of the asset in the taxpayer’s trade or business which is…

Q: b. If the activity is deemed to be a regular business, what is the amount of Lew's loss from the…

A: Amount of Lew's loss from the activity=Sales-(Depreciation on greenhouse+Fertilizer, soil, pots)

Q: A business entity that has no ;ax liability because the entity's income is passed through to the…

A: A business entity is an independent organization established under the law to engage in commercial…