Double Taxation : The principle of twice the payment of income tax for the same source of income is known as double taxation. Corporation : It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity. : To identify the characteristic of a corporation which is a disadvantage.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

test test 123

Need assi

Consolidation after Several Years On January 1, 2016, Adams Corporation acquired all of the stock of Baker Company. The fair value of Adams’ shares used in the exchange was $37,500,000. At the time of acquisition, the book value of Baker’s shareholders’ equity was $5,000,000, and the book value of Baker’s building (25-year life) exceeded its fair value by $1,000,000. From the date of acquisition to December 31, 2021, Baker had cumulative net income of $1,300,000. For 2022, Baker reported net income of $300,000. Adams uses the complete equity method to account for its investment in Baker. There is no goodwill impairment loss for the period 2016 through 2021, but there is impairment loss of $100,000 in 2022. Baker declared no dividends during the period 2016–2022. Required Prepare the working paper eliminating entries necessary to consolidate the financial statements of Adams and Baker at December 31, 2022. Enter numerical answers using all zeros (do not abbreviate in thousands or in…

Answer 2

Question

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Answer 6

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Answer 7

Chapter 13, Problem 1QC

To determine

Double Taxation: The principle of twice the payment of income tax for the same source of income is known as double taxation.

Corporation: It is a form or business wherein the company is a separate legal entity and is not affected by the death of its owners. In a corporation, the finances are raised through investors by issuing them company shares i.e. ownership of the company as per their share in the equity.

:

To identify the characteristic of a corporation which is a disadvantage.

Answer 8

Expert Solution & Answer

Answer to Problem 1QC

Solution:

The Double taxation characteristic of a corporation is a disadvantage for the corporation.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The first option “Mutual agency” is an advantage of a corporation because there is no mutual agency in corporation and the third option “limited liability” is also an advantage of a corporation because the shareholder of the corporation cannot be held personally liable for the corporation’s debts and liabilities.

According to third characteristic, a corporationpay taxes twice. One, when the corporation makes profit from its business activity, it pays corporate tax on its profit. Second, when the corporation declares dividend for shareholders to distribute the profit. It is consider as a disadvantage of a corporation.

Answer 12

Conclusion

:

One of the major disadvantages of a corporation is the double taxation characteristics of a corporation. It basically means the corporation has pay taxes two times on the same profit amount during a particular business period.

Answer 13

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Prob. 3QC Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Prob. 6QC Ch. 13 - Prob. 7QC Ch. 13 - Prob. 8QC Ch. 13 - Prob. 9QC Ch. 13 - Prob. 10QC

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 13 Solutions