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Leto [7]
2 years 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]2 years 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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Edgar owns 234 shares of Cawh Consolidated Bank, which he bought for $21.38 apiece. Each share pays a yearly dividend of $3.15.
Nataliya [291]

Answer:

The stocks yields 14.73% per year

the bonds yields 7.89% per year

The stock provide a better yield, which is 6.84% greater than bonds yield

Explanation:

the return will be calculate as follow:

return/ investment cost

<u>stocks</u>

return 3.15 dividends

cost 21.38 each stock

yield:

3.15 / 21.38 = 0,14733395 = 14.73%

<u></u>

<u>bonds</u>

return: cuopon payment 1,000 x 8.3% = 83

cost : market value 1,000 x 105.166/100 = 1,051.66‬

yield:

83/1051.66 = 0,07892284 = 7.89%

<em>Difference:</em>

stocks 14.73 - bonds 7.89 = 6.84

5 0
4 years ago
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Describe at least one global trend that you think offers a business opportunity in the global marketplace?
Amiraneli [1.4K]
Well something that is a global trend here is the advancements in technology. This is because it allows business to be done quicker and more efficiently by optimizing time and energy.
8 0
3 years ago
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Pillar Company owns 70 percent of Salt Company's outstanding common stock. On December 31, 20x8, Salt sold equipment to Pillar a
emmainna [20.7K]

Answer:

C. Pillar's original cost less Salt's recorded gain

Explanation:

For physical assets, that is in the form of machineries or computer hardware or in this case, equipment, we can calculate the carrying cost to be the original cost minus accumulated depreciation.

in answer to this question, the carrying amount of the equipment should be reported at <u>Pillar's original cost less Salt's recorded gain.</u>

4 0
3 years ago
How to do a journal entry in accounting​
Dovator [93]

Answer:

You should "Debit" one account in your general ledger and "Credit" another.

Explanation:

Example - you receive an invoice from your vendor for $100,000 (assuming non-VAT transaction). Your journal entry would look the following:

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4 years ago
Identify three likely affects of an increasing global population
Rom4ik [11]

Answer:

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6 0
3 years ago
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