The profits and losses of the C corporation are passed directly to shareholders and are not subject to corporate? taxes, while the S corporation must first pay taxes on any profits before passing the? after-tax profits on to shareholders.
a. true
b. false
Answer is a. true. ( Above statement is true also, the S corporation can have no more than 100 shareholders, all of whom must be US citizens or residents. The C corporation does not have any such restrictions on its shareholders.)
You might also like to view...
All of the following requirements must be met to satisfy the doctrine of res ipsa loquitur EXCEPT
A) The injured party has not contributed to the accident in any way. B) The injured party must prove negligence on the part of the defendant. C) The event is one that normally does not occur in the absence of negligence. D) The defendant has exclusive control over the instrumentality causing the accident.
A portfolio manager enters into a total return swap. She swaps 50% of her $50 million index based portfolio for 4.5% yield bonds
If the annualized total return on the index is 2.5%, what net cash flow will the manager experience under the swap agreement? A) + $250,000 B) -$250,000 C) + $500,000 D) -$500,000
The variance is more meaningful and easier to interpret compared to the standard deviation
Indicate whether the statement is true or false
Walker Manufacturing took in $206,500 in sales during October. They started the month with inventory worth $642,500 and spent $368,600 on new purchases during the month. Gross margin on sales was 66%. Using the gross profit method, estimate the cost value of the inventory at the end of October
A) $70,210 B) $436,000 C) $940,890 D) $1,011,100