Solved by verified expert :1523. CHAPTER 13—COMPARATIVE
FORMS OF DOING BUSINESS Question ES #10
To which of the following entities does the AMT apply?
·
Sole proprietorship.
·
Partnership.
·
LLC.
·
S corporation.
·
C corporation.
1524. CHAPTER 13—COMPARATIVE
FORMS OF DOING BUSINESS Question ES #11
How can double taxation be avoided or reduced by owning assets outside a C
corporation?
.
1525. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question ES #12
Normally a C corporation shareholder would prefer to receive a return of
capital distribution (e.g., stock redemption) rather than a dividend
distribution. Provide an example of where the opposite is true.
1526. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question ES #13
Aubrey has been operating his business as a C corporation for the past 5 years.
The corporation pays him a reasonable salary. The profits of the corporation,
after paying Federal income tax, are distributed to him each year as a
dividend. He is considering electing S status for his corporation in order to
avoid double taxation. What factors should he consider assuming after-tax
earnings will continue to be distributed to him?
1527. CHAPTER
13—COMPARATIVE FORMS OF DOING BUSINESS Question ES #14
Why are S corporations not subject to the accumulated earnings tax?
