Organization: An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations. Corporation A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners. S Corporation S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation . This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders. To Identify: The income left after the personal tax has been paid, being a shareholder of an S corporation.

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Answer 1

Question

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

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Answer 2

Question

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

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Answer 3

Question

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

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Answer 4

Question

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

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Answer 5

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

Answer 6

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

Answer 7

Chapter 1, Problem 7P

Summary Introduction

Organization:

An organization is a type of entity where in a group of people come together to achieve a common goal. A business organization exists basically in four types of forms namely sole proprietorships, partnerships, limited liability companies, and corporations.

Corporation

A corporation is a separate legal entity which is separate from its owners. It is an artificial body and continues to exist even after the death of its owners where in such case the ownership is transferred. The owners are separate from the legal body and hence they are not liable for any obligation of the corporation individually. Similarly, the corporation is also not liable for any of the personal obligations of its owners.

S Corporation

S Corporations are those forms of corporations that purposefully elect the subchapter S tax treatment because this is how they are exempted from double taxation. This U.S. Internal Revenue Service’s tax code allows these S corporations to be taxed only once and reduces the double taxation burden from the shareholders.

To Identify:

The income left after the personal tax has been paid, being a shareholder of an S corporation.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1 - Prob. 1CC Ch. 1 - Prob. 2CC Ch. 1 - Prob. 3CC Ch. 1 - Prob. 4CC Ch. 1 - Prob. 5CC Ch. 1 - Prob. 6CC Ch. 1 - Prob. 7CC Ch. 1 - Prob. 8CC Ch. 1 - Prob. 9CC Ch. 1 - What is the basic financial cycle?

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