Select the best answer.Which of the following statements is true related to the conversion of a regular corporation to a limited liabcompany (LLC) taxed as a partnership?OAOO105In the conversion of a C corporation to an LLC taxed as a partnership, the transfer ofappreciated assets from the liquidating corporation is not taxed at the corporate level.The corporation can contribute its assets and liabilities into the new LLC in exchange forB. ownership interests. The corporation then distributes the LLC interests to its shareholders inliquidation of the shareholders' corporate stock.O D.If the corporation distributes its assets and liabilities to its shareholders in liquidation of theC. corporation, the shareholders are restricted from contributing these assets into the newpartnership.The existence of substantially appreciated intangibles and goodwill with little or no tax basishas no tax consequences when converting a C corporation to an LLC.Submit Answers100% CompleteExit

An American corporate structure called a limited liability company (LLC) shields its owners from…

Answered: Which of the following statements is…

Which of the following statements is true related to the conversion of a regular corporation to a limited liab company (LLC) taxed as a partnership?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Chapter 11 - Question 3: (a) Contrast the federal income taxation of a corporation with that of a…

A: Income tax expense: The expenses which are related to the taxable income of the individuals and…

Q: Complete the chart below by selecting Yes/No in the appropriate column. Type of Business…

A: Types of Business organisation There are different types of business organisation is existed in the…

Q: TRUE OR FALSE Double taxation is when partnership earnings are taxed when earned by the business…

A: Double Taxation A tax principle known as "double taxation" refers to paying taxes repeatedly on a…

Q: Which of the following statements is true of a sole proprietorship? A. A sole proprietorship…

A: The business can be identified as sole proprietorship, partnership or others.

Q: Although shares of master limited partnerships can be purchased on one of the national stock…

A: Master limited partnership is partnership that function as a public traded company. It has two types…

Q: Select the best answer. Which of the following sta O A. A business enti O B. A disadvantage O C. By…

A: Partnership refers to the term which is defined as the contractual agreement among two or more…

Q: The difference between partnership and corporation can be best described in which of the following…

A: Partnership is the association of two or more individuals who collaborate with a view to conduct a…

Q: Which one of the following statements regarding partnership taxation is incorrect? a.Partnership…

A: Partnership Taxation - Under Partnership business partnership account record all the transactions…

Q: Outline the responsibilities of the compliance officer or partner for income tax purposes in a…

A: Introduction: A limited liability partnership (LLP) is a form of business partnership in which the…

Q: Which, if any, of the following can be eligible shareholders of an S corporation? a. A Roth…

A: An S Corporation is a special type of corporation which is established for the purpose of federal…

Q: Which of the following is NOT a separately stated item? Section 179 expense deduction. Charitable…

A: This question is related to the Federal tax reporting system and concerns the disclosure of items.

Q: Which of the following items may be subject to the sef-employmant tax? A partners distributive…

A: The self-employment tax is a tax on net earnings from self-employment, which includes income from a…

Q: Which of the following statements regarding income recognition is true? A. Owners in a regular…

A: Sole proprietorship is the type of business entity in which its operations and management is…

Q: llowing categories of owners have unlimited liability? Select one: a. both A and B b. sole…

A: Introduction : In simple words, the concept of unlimited liability refers to the situation under…

Q: Which of the following is true about a corporation? It combines the advantages of the other…

A: A corporation is a legal entity that is separate and distinct from its owners. This separation…

Q: For Federal income tax purposes, a distribution from a partnership to a partner is treated the same…

A: The correct option with proper explanation are as follows:

Q: Although shares of master limited partnerships can be purchased on one of the national stock…

A: Master limited partnership is a publicly traded partnership and also offers the tax benefits of a…

Q: For federal income tax purposes, most LLC members elect for the LLC to be treated like a(n):…

A: A Limited Liability Company is a business structure allowed by state statute. Each state may use…

Q: 1. When do owners of a partnership get the tax benefit of claiming apartnership business loss? What…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Income from an S corporation is calculated in the same way as from a partnership and is reported on…

A: Answer In S corporation as per federal income tax purpose the shareholders are taxes as an…

Q: Which of the following is correct? a.A partnership is a reporting entity but not a taxable entity.…

A: A partnership is an entity is which persons agree to share profits and bear losses derived from the…

Q: Which of the following statements is true? a. S corporations are typically subject to one level of…

A: The correct answer is:b. Partnerships are typically subject to one level of tax at the partner…

Q: Which of the following is true for a Limited Liability Company (LLC)? business income is taxed at…

A: A company is an organization formed by a group of individuals. This group of individuals have a…

Q: Complete the following table with either a yes or a no regarding the attributes of a partnership,…

A: Partnership refers to a formal agreement between two or more persons for operating and managing a…

Q: Which of the following statements is true about a Subchapter S corporation? It is taxed like a…

A: There are mainly various types of organization under which an organization can run business. One of…

Q: What are the tax advantages and disadvantages of converting a C Corporation into an LLC?

A: GIVEN the tax advantages and disadvantages of converting a C Corporation into an LLC

Q: Select the best answer. Which of the following statements is true for an S corporation? OA. Each…

A: S corporations are a popular choice of business entity for small business owners because they…

Q: what are the differences between basis period of tax that use for the company purpose and for the…

A: Answer: Basis period is defined as the taxable period for which books are finalized and reported to…

Q: What is the main difference between the way a partnership is taxed versus the way a corporation is…

A: Introduction: A partnership is characterized as two parties uniting to share benefits and…

Q: Which, if any, of the following transactions incurred by an S corporation is not a separately stated…

A: S Corporation:- S Corporation is a closely held corporation of United States federal income tax…

Q: which of the following statements regarding entities is true ? (a) c corporation is an…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: Which of the following items may be subject to the self-employment tax? a.Dividend income b.Interest…

A: Introduction Self-employment tax: Self-employment tax is the tax which is imposed on business owners…

Q: 1. C corporation on Form 1120 corporation on Form 1120S III. Partnership on Form 1065 IV. Sole…

A: The Section 199A qualified business income deduction is a tax deduction for eligible taxpayers with…

Q: S corporations.

A: C corporation for tax purposes means Double taxation in which shareholders are taxed seperately from…

Q: Which statement is true? In computing the net taxable income of a corporation availing of the…

A: Optional Standard Deduction (OSD) - It is a maximum deduction of 40% of Gross sales/ gross receipts…

Q: All of the following are self-employment income except A) net income of a sole proprietorship.…

A: SOLUTION- SELF EMPLOYED INCOME IS EARNED FROM CARRYING ON BUSINESS OR TRADE AS A SOLE PROPRIETOR ,…

Q: Owners enjoy limited liability in a a) partnership b) corporation c) sole proprietorship d)…

A: Solution: Corporations are separate legal entity from owners / shareholders. In corporations, owners…

Q: Can a sole proprietor form as a single-member limited liability company (LLC)? If so, how would such…

A: Internal Revenue Service has classified the businesses as : Sole proprietorship S corporation C…

Q: To qualify as a pass-through entity for U.S. corporate income tax, a REIT must be all of the…

A: REIT : Real-estate investment trust was established by congress to allow the individual investors…

Q: Which of the following is not true of a corporation? Oa. It may enter into binding legal contracts…

A: Corporation has separate legal entity. This means the corporation is separate from its owners. Thus,…

Q: How does the federal income tax system treat dividends receivedby a corporation versus those…

A: Income tax is the portion of income paid to the government or the authorized taxation bodies as the…

Q: Provide a summary of how tax levies may be imposed on C or S Corporations. Provide a rationale for…

A: Tax levies can be imposed on C or S Corporations by the government to collect unpaid taxes or other…

Q: Which of the following statements is true related to the conversion of a regular corporation to a…

A: In a partnership, two or more people or organizations agree to invest money, time, and expertise in…

Q: Which business entity could O A. a sole proprietorship O B. a partnership O C. a limited liability…

A: When a group of people with a shared objective form a corporation, it is known as a corporation.…

Question

100%

Select the best answer.
Which of the following statements is true related to the conversion of a regular corporation to a limited liab
company (LLC) taxed as a partnership?
OA
O
O
105
In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of
appreciated assets from the liquidating corporation is not taxed at the corporate level.
The corporation can contribute its assets and liabilities into the new LLC in exchange for
B. ownership interests. The corporation then distributes the LLC interests to its shareholders in
liquidation of the shareholders' corporate stock.
O D.
If the corporation distributes its assets and liabilities to its shareholders in liquidation of the
C. corporation, the shareholders are restricted from contributing these assets into the new
partnership.
The existence of substantially appreciated intangibles and goodwill with little or no tax basis
has no tax consequences when converting a C corporation to an LLC.
Submit Answers
100% Complete
Exit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Meaning of limited liability company

VIEW

Step 2: Explanation of correct option

VIEW

Step 3: Explanation of incorrect options

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

LO.3 Compare the provision for the nonrecognition of gain or loss on contributions to a partnership (i.e., § 721) with the similar provision related to corporate formation (i.e., § 351). What are the major differences and similarities?
Tax Drill - Overview of LLCS Indicate whether the following statements are "True" or "False" regarding tax issues related to limited liability companies (LLCS). a. A partnership that reorganizes as an LLC is treated as having liquidated prior to forming the new entity. The transaction Is taxable to both the partnership and the partners. b. Because none of the LLC members are personally liable for any debts of the entity, the LLC is effectively treated as a limited partnership with no general partners. All owners of an LLC have the legal right to participate in the entity's management. C. d. State statutes differ from state to state as to the type of business an LLC can conduct -particularly as to the extent to which certain service-providing firms can operate as LLCS.
Complete the following table with either a yes or no regarding the attributes of a proprietorship, partnership, corporation, and limited liability company (LLC).
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% Complete
Which of the following is correct? a.A partnership is a reporting entity but not a taxable entity. b.An individual is a reporting entity but not a taxable entity. c.A corporation is a reporting entity but not a taxable entity. d.A partnership is a taxable entity and a reporting entity.
In a limited liability company, profits are taxed as a partnership. True False
An S corporation is subject to the following tax(es). a.Corporate income tax. b.Built-in gains tax. c.Alternative minimum tax. d.None of these choices are correct.
Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of stockholdersc. Mutual agencyd. Both b and c
Which statement is incorrect? a. S corporations are treated as corporations under state law. b. S corporations are treated as partnerships for Federal income tax purposes. c. Distributions of appreciated property are taxable to the S corporation. d. All of these choices are correct.
Please indicate which of the following statements is true regarding types of business entities? Multiple Choice O None of the choices are true. Ownership in a partnership is represented by having shares of common stock. For accounting purposes a sole proprietorship is not a separate entity from its owner. Sole proprietorships are subject to double taxation.
Which of the following are limited liability entities? A. General partnership B. General liability company C.sole proprietorship D. S corporation
Which of the following entities is taxed as a C corporation and will file Form 1120, U.S. Corporation Income Tax Return? (a) Kenneth, Inc., a pass-through entity taxed at the shareholder level. (b) Plushpuppies, Inc., which has made a valid subchapter S election. (c) Minors Financial, an unincorporated organization formed in 1995. Minors has been filing as a corporation since 1995. (d) Rescue Dogs, Inc., which has been recognized as a tax-exempt organization