A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project. To find: The imposition of tax on company DM as a partnership or a corporation .

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Answer 1

Question

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

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Answer 2

Question

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

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Answer 3

Question

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

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Answer 4

Question

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

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Answer 5

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

Answer 6

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

Answer 7

Chapter 17, Problem 1RE

Summary Introduction

Case summary: A proposal for the repair of a damaged bridge in city P was made. A design was prepared by an LLC named DM, in collaboration with a local sculptor namely S, which was selected by the city. Both DM and person S agreed to work together and divided their assignments, payments, and profits. They successfully completed the project.

To find: The imposition of tax on company DM as a partnership or a corporation.

Answer 8

Expert Solution & Answer

Explanation of Solution

A limited liability company(LLC) would be liable to pay tax as a partnership firm unless it itself declares to be taxed as a corporation. Any LLC which consists of at least two members have the option to choose between a corporation or a partnership taxation.

In this case, both parties have not declared to be taxed as a corporation. Therefore, they will be taxed as a partnership. In a partnership agreement, the profits are transferred through the partners or members who are laible to pay taxes on the profit generated.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 17 - Prob. 1RE Ch. 17 - Prob. 2RE Ch. 17 - Prob. 3RE Ch. 17 - Prob. 4RE Ch. 17 - Prob. 1IS Ch. 17 - Prob. 2IS Ch. 17 - Prob. 1BS Ch. 17 - Prob. 2BS Ch. 17 - Prob. 3BCP Ch. 17 - Prob. 4BCP

Explanation of Solution

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Chapter 17 Solutions