In an S corporation, taxes are “passed through.” This means which of the following?
a. the individual pays twice, taxes on profits and taxes on income
b. the individual pays no taxes because the company has already been taxed
c. income that the owner takes is reported on personal income taxes only
d. the revenue that the owner takes to live on is not taxed
c. income that the owner takes is reported on personal income taxes only
You might also like to view...
Select the statement that BESTdescribes computer templates and their use
a. You can safely use templates provided in your computer software for most re-ports. b. You cannot modify computer templates. c. When choosing a template, select the most elaborate design available. d. When in doubt about using a template, ask someone in your organization.
If Mexico had a favorable balance of trade it could be said that it has a ____________________.
Fill in the blank(s) with the appropriate word(s).
Twenty-five percent of all resumes received by a corporation for a management position are from females. Fifteen resumes will be received tomorrow
a. Define the random variable in words for this experiment. b. What is the probability that exactly 5 of the resumes will be from females? c. What is the probability that fewer than 3 of the resumes will be from females? d. What is the expected number of resumes from women? e. What is the variance of the number of resumes from women?
Scott provides accounting services worth $40,000 to the ABC Partnership in exchange for a 20% interest in the capital and profits of the partnership. The tax result to Scott is
A) a partnership interest with a zero basis and no gain or loss. B) a partnership interest with a zero basis and $40,000 of ordinary income. C) a partnership interest with a $40,000 basis and $40,000 capital gain. D) a partnership interest with a $40,000 basis and $40,000 ordinary income.