Discuss whether a C corporation or a pass-through entity form of organization would be preferred if taxable income is anticipated to be earned by the business.
What will be an ideal response?
Taxable income earned by the C corporation will be taxed at 21%. When dividends are paid, they will then be taxed to the shareholders at rates up to 23.8%. If the business is treated as either a partnership or an S corporation, there is no entity-level tax, but the full income is taxed to the owners at their ordinary rates which could be as high as 37%. The effective tax rate paid by the partner or S corporation shareholder could be lower if the pass-through income is eligible for the qualified business income deduction.
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For bonds, price sensitivity to a given change in interest rates is generally greater the longer before the bond matures.
Answer the following statement true (T) or false (F)
Which of the following businesses is most likely to use process costing?
A) chemical plant B) architectural firm C) dentist's office D) manufacturer of fine furniture
The fundamental principle of international law is the notion that each government has the absolute authority to rule its people and its territory
Indicate whether the statement is true or false
Extraterritoriality can be defined as A)the power of one nation to create trade restrictions that involve other countries
B)the power to regulate tariffs in foreign nations as provided for by GATT. C)the power of one nation to impose its laws in other countries. D)the power of a company to extend its subsidiaries overseas without abiding by trade laws.