If you were seeking an entity with the most favorable tax treatment regarding (1) the number of owners allowed, (2) the flexibility to select your accounting period, and (3) the availability of preferential capital gains rates when selling your ownership interest, which entity should you decide to use?
A. S corporation.
B. Partnership.
C. C corporation.
D. Sole proprietorship.
Answer: C
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Indicate whether the statement is true or false
On the statement of revenues, expenditures, and changes in fund balance for a capital projects fund, proceeds of general obligation bonds should be reported:
A. as a subtraction from construction expenditures. B. in the other financing sources (uses) section of the statement. C. in the revenue section of the statement. D. as a direct addition to the beginning balance of unreserved fund balance.
Sources of unsystematic risk include 1 . the firm's financing decisions 2 . the firm's operations 3 . fluctuating market prices
a. 1 and 2 b. 1 and 3 c. 2 and 3 d. all of the above
Art Newner wants to know how much he will have to invest today in order to receive an annuity of $8,000 for three years if interest is earned at 10% annually. He will make all his withdrawals at the end of each year. How much should Art invest?
What will be an ideal response?