An individual is planning to establish a new corporation and is weighing the choice between the C corporation form and the S corporation form. She expects the corporation to be profitable each year, with all profits reinvested except to the extent needed to pay corporate taxes or shareholder taxes on profits. The shareholder's plan is to sell the business after six years for a substantial gain.
Factors to consider in modelling the entity choice include all of the following except
A) the individual's ordinary income and capital gains tax rates.
B) the shareholder's eligibility for the qualified business income deduction.
C) the availability of the Sec. 1202 exclusion.
D) all of the factors must be considered in the modelling.
D) all of the factors must be considered in the modelling.
Each of these factors will be included in the Pass-through model and the C corporation model.
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The social influence model of withdrawal behavior suggests that employees with fewer bonds will be most likely to quit the organization.
Answer the following statement true (T) or false (F)
Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is
A) $53,000. B) $47,000. C) $33,000 D) $37,000.
The chart of accounts for a partnership, with the exception of drawing and capital accounts, does not differ from the chart of accounts for a sole proprietorship
Indicate whether the statement is true or false
What is the difference between government regulation of business and corporate social responsibility?
What will be an ideal response?