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Leto [7]
1 year ago
10

What are subchapter c earnings and profits (e&p)? how does the existence of such e&p affect the s corporation's ability

to earn passive income?
Business
1 answer:
irina [24]1 year ago
8 0

According to the tax attribute carryover regulations, Subchapter C E&P are profits that the S corporation inherited from a C corporation.

The existence of such e&p affect the s corporation's ability to earn passive income in the following ways -

1- If a S corporation has E&P at the end of a tax year, the excess net passive income tax applies if the passive investment income for the tax year exceeds 25% of the S corporation's gross receipts.

2- It stops the firm from generating an endless stream of passive investment income and avoiding paying the excess net passive income tax.

An S corporation cannot generate earnings and profits under current tax rules (E&P). However, if the S corporation itself was a C corporation in the past, it may have accumulated E&P from those years.

To learn more about subchapter S or S corporation  click here :

brainly.com/question/14839306

#SPJ4

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Which of the following best describes the group development pattern known as punctuated equilibrium?
melisa1 [442]

Answer:

The answer is B: At the midpoint of the project, members realize that their behavior pattern must change in order to complete the project on time.

Explanation:

Punctuated equilibrium is a concept in both biology and business where long periods of relative stability are often followed by growth spurts.

The punctuated-equilibrium model argues that groups usually move forward during bursts of change after going for long periods without change.

In the answer B, this concept is captured as group members of a project realise somewhere at the midpoint, that their behavior pattern must change in order to complete the project on time.

This shows that a period of relative stability was observed and then a short period of growth will be observed during the project lifecycle. This agrees with the development pattern known as punctuated equilibrium.

4 0
3 years ago
Read 2 more answers
A company earned $7,605 in net income for October. Its net sales for October were $19,500. Its profit margin is:
vivado [14]

Answer: 39%

Explanation:

From the question, we are informed that company earned $7,605 in net income for October and that its net sales for October were $19,500.

To calculate its profit margin, we have to divide the net income by the net sales. This will be:

= 7605/19500

= 0.39

= 39%

3 0
3 years ago
A company's balance sheet shows: cash $28,000, accounts receivable $34,000, equipment $58,000, and equity $76,000. what is the a
fredd [130]
The amount of liabilities is $196,000
7 0
3 years ago
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What best describes a SCRUM Team​
igomit [66]

Answer: Characteristics Of A Great Scrum Team. ... Within Scrum self-organizing, cross-functional, and highly productive teams do the work: creating valuable releasable product increments. Scrum offers a framework that catalyzes the teams learning through discovery, collaboration and experimentation.

Explanation:

A Scrum Team is a collection of individuals working together to deliver the requested and committed product increments. To work effectively it is important for a Scrum Team that everyone within the team. follows a common goal.

7 0
3 years ago
Masterson Company's budgeted production calls for 68,000 units in April and 64,000 units in May of a key raw material that costs
Finger [1]

Answer:

The budgeted materials needed in units for April = 67000 litres

Explanation:

The budgeted  production for April = 68000 units

The budgeted  production for may = 64000 units

The cost of raw material per unit = $1.70 per unit

It is given that at the end of each month the inventory should be = 25%

The April 1 inventory = 17000 units

Now calculate the material required for April production:= [ Materials needed + ending inventory requirements - beginning inventory available ]= [ 68000 + (64000 × 25%) – 17000 ] = 67000 Litres

Therefore, the budgeted materials needed in units for April = 67000 litres

7 0
3 years ago
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