### Rondo and his business associate larry are considering

Assignment Help Accounting Basics
##### Reference no: EM13591218

Rondo and his business associate, Larry, are considering forming a business entity called R&L but they are unsure about whether to form it as a C corporation, an S corporation or as an LLC. Rondo and Larry would each invest \$93,000 in the business. Thus, each owner would take an initial basis in his ownership interest of \$93,000 no matter which entity type was formed. Shortly after the formation of the entity, the business borrowed \$38,000 from the bank. If applicable, this debt is shared equally between the two owners.

a.After taking the loan into account, what is Rondo's tax basis in his R&L stock if R&L is formed as a C corporation?

b.After taking the loan into account, what is Rondo's tax basis in his R&L stock if R&L is formed as an S corporation?

c.After taking the loan into account, what is Rondo's tax basis in his R&L ownership interest if R&L is formed as an LLC?

### Previous Q& A

#### Debate the necessity of preparing formal financial

debate the necessity of preparing formal financial statement if all of the data are in the statement columns of the

#### Show that if f is continuous on the closed interval a b

a show that if f is continuous on the closed interval a b then there is a function g which is continuous on r and

#### A wire loop of radius 050 m lies so that an external

question a wire loop of radius 0.50 m lies so that an external magnetic field of magnitude 0.30 t is perpendicular to

#### What is the amount of the overall tax on jabar corps 255000

what is the amount of the overall tax on jabar corp.s 255000 prelease expense income if jabar corp. leases equipment

#### What is els corps current year ace adjustment assuming its

during the current year els corporation reported the following tax-related informationbull 5000 tax-exempt interest

#### A 107g object moving to the right at 183 cms makes an

a 10.7g object moving to the right at 18.3 cms makes an elastic head-on collision with a 16.2g object moving in the

#### What is the ytm of the competitors bond you may use a

introduction you will assume that you still work as a financial analyst for airjet best parts inc. the company is

#### A mountaineer leaves home at 7am and walks to the top of

a mountaineer leaves home at 7am and walks to the top of the mountain arriving at 7pm. the following morning he starts

#### Benny purchased 400000 of peach corporation face value

benny purchased 400000 of peach corporation face value bonds for 320000 on november 13 2012. the bonds had been issued

#### The transformer supplying power to an artists light

the transformer supplying power to an artists light sculpture provides 9600-v ac when supplied by 120-v ac. if there

### Similar Q& A

#### Find the accumulated amount a if the principal p 2000 is

find the accumulated amount a if the principal p 2000 is invested at the interest rate of r 6 per year for t 6 years

#### Study appendix 13 consider the following data regarding

study appendix 13. consider the following data regarding factory overhead variable fixed budget for actual hours of

#### Compare the physical units of production

Compare the physical units of production Compute equivalent units of production for materials and for conversion costs.

#### Determine the contribution margin per direct labor-hour

The Bird Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year.

#### Orwell company accumulates the following adjustment data at

orwell company accumulates the following adjustment data at december 311. service provided but not recorded total

#### Determine the annual unit sales volume at which the firm

zodiac company has decided to introduce a new product which can be manufactured by either a computer-assisted

#### Fontenot corporation was organized in 2011 and began

fontenot corporation was organized in 2011 and began operations at the beginning of 2012. the company is involved in

#### Amount per unit direct materials 600 direct labor 350

martinez companys relevant range of production is 7500 units to 12500 units. when it produces and sells 10000 units its

#### Calculate the average variable rate for costs

Calculate the average variable rate for the following costs: food and wages, delivery costs, and other costs.

#### The captain company began operations on january 1 2014 the

the captain company began operations on january 1 2014. the company estimated that 0.10 of warranty costs will be

#### Major branches of philosophy and identify the importance

Identify and explain three major branches of philosophy and identify the importance of each to an accountant point of view

#### Sales and actual warranty expenditures

Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows: