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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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mr_godi [17]

Answer:

IT personnel

Explanation:

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6 0
4 years ago
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Which category of cost includes insurance and utilities
Nata [24]

Answer:

Administrative Cost

Explanation:

Administrative cost refers to the cost used in directing and controlling a firm, corporation or organisation. These cost includes salary and wages of employee, insurance, depreciation, postage, stationery, rent, etc.

It is sometimes refers to as general cost. It is used in the day to day running of the business, but not directly attributable to any production process. These cost can not be categorized as either financing or distribution cost. Hence, it falls under administrative cost.

8 0
3 years ago
A rise in the foreign interest rate will Group of answer choices
Margaret [11]

Answer:

raise the value of foreign‑currency put options and lower the value of foreign‑currency call options

Explanation:

Options are the ability of an investor to buy or sell an asset. A call option is the choice to buy an asset at a particular price on or before a particular date.

A put option is the choice to sell an asset on or before a particular date.

As foreign interest rate increases and exchange rate is constant, the value of the foreign currency decreases therefore resulting in a decrease in value of call options.

This also results in an increase in value of put options

4 0
3 years ago
I'LL GIVE BRAINLIST!!!
vesna_86 [32]

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C. he was happy to learn that he would be given a loan to cover all college expenses.

Explanation:

A student that is given a loan to cover college expenses have to go for entrance counselling in order to receive appropriate orientation and he will also have to sign promissory note that he will return the loan given.

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3 years ago
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ANTONII [103]

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