What entity they form, the company will pay tax on the

What entity they form

Assignment Help Accounting Basics

Reference no: EM133612412

Question: Alice and Joe want to form a business together. They anticipate that the company will lose money for the first two years, turn a profit in year three, and be profitable after that. Their plan is to share equally in the company's profits and losses. Once the company turns a profit, they plan to authorize quarterly distributions of half the company's profits from the previous quarter to the two owners (Alice and Joe will be the only owners). Based on the scenario above, what advice to Alice and Joe is accurate? (choose all that are correct) Group of answer choices If they form an entity and elect pass-through taxation, they will each be responsible to pay taxes on their share of all of the company's profits. If they form an entity and elect pass-through taxation, they will be responsible to may taxes only on the 50% of company profits distributed to them each quarter. If they form an entity and elect double taxation, the company will pay tax on the profits of the company and both Alice and Joe will pay tax on the 50% of company profits distributed to them each quarter. It doesn't matter what entity they form

Reference no: EM133612412

Questions Cloud

How to file schedule : How to file schedule a: state w/h , Payment to State of Georgia in 2022 as a result of tax audit - $4,573. Of this amount, $3,573 was interest & penalties

How would you reflect this land on xyz''s financial statement : How would you reflect this land on XYZ's financial statements if the subsidiary's functional currency is the Canadian dollar?

What is the times-interest earned ratio : Net Income $ 55,000 Income Tax Expense 8,000 Interest Expense 4,500 What is the Times-interest earned ratio, given the information provided

What is the slope? coefficient : Machinehours Labor Costs Highest observation of cost driver Lowest observation of cost driver What is the slope? coefficient

What entity they form : the company will pay tax on the profits of the company and both Alice and Joe will pay tax on the 50% of company profits distributed to them each quarter.

Describe relevance of criminal justice reform in hate crimes : Introduction describing the relevance of Criminal Justice Reform in Hate Crimes and should include descriptive data), and an Annotated Bibliography.

How has this movement been important to the ways : How has this movement been important to the ways that Western Europeans have evolved and defined themselves and declared their identity?

Discuss the concept of conscientious objection : Die to yours religious views on abortion, you do not want to look after Yoki on your shift. Discuss the concept of conscientious objection.

What moments were the most engaging and why : What moments were the most engaging and why? Were there any moments of disconnect or when the performance felt poor or unrealistic?

User Account

All Pages