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Scorpion4ik [409]
3 years ago
13

Which of the following will prevent a corporation from qualifying as an S corporation?A. Deriving more than 40% of its gross rec

eipts from passive income sources.B. Having a partnership as a shareholder.C. Owning more than 50% of the stock of a domestic corporation.D. Having 100 shareholders.
Business
1 answer:
Semenov [28]3 years ago
5 0

Answer:

Having a partnership as a shareholder.

Explanation:

An S corporation or an S sub-chapter is a small business corporation that has been allowed by the Internal Revenue Services(IRS) to file its tax as a corporation. IRS recognizes an S corporation as a legal form of business ownership. An S corporation may elect to pass its income and losses deductions directly to the shareholders for federal tax purposes.

For a small business corporation to qualify as an S corporation, it must meet specific requirements. Some of the requirements include

  1. Shareholders should be individuals, certain trusts, estates, and specific exempt organizations. Shareholders can not be corporations or partnerships.
  2. Shareholders must be US residents or citizens
  3. The Entity should not have more than 100 shareholders.

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Juan Alcobar is junior sales representative for a large equipment manufacturer. Sarah Gittins, a senior sales representative, ha
ipn [44]

Answer:

C. A proposal of products that will solve the prospect's problems.

Explanation:

With regards to the above scenario, both Joan and Sarah put together a proposal of products that will solve the project's problems by critically analyzing the needs of the huge new prospect and providing various options.

Here, both staff knew the need of the prospect hence are able to come up with necessary questions and various solutions that would address the needs.

In addressing a need, various alternatives to providing solution to that need must be made available which is what was provided to the huge new client.

7 0
3 years ago
Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales co
Mariana [72]

Answer:

1. Prepare an income statement for Allstar for the past month.

The income statement is given below.

Sales                              $ 410,000

Commission Cost          ($ 50,000)

Technology Cost           ($ 75,000)

R/D Cost*                       ($ 200,000)

Selling expenses             ($ 10,000)

Admin expenses             ($ 35,000)

Net profit                          $ 40,000

* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).

2. Briefly explain why Allstar's income statement has no line for cost of goods sold.

As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.

6 0
3 years ago
Read 2 more answers
Explain the difference between primary and secondary authorities as sources of tax information. On which type of authority shoul
RSB [31]

Answer:

a.

Primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government while secondary sources can be generally defined as interpretations of the law done by non-governmental entities.

b.

The type of authority which professional tax research conclusions should be based on are the primary sources.

Explanation:

a.

Primary sources of tax information are documents that are provided directly by an authority usually the government. Primary sources usually carry heavy weight especially when there is a conflict in the understanding of a federal tax law. These sources are often used by law practitioners as a basis in understanding cases of a similar nature. Some examples of primary sources of tax information include; internal revenue code, final and temporary regulations, non-codified federal tax statutes, and judicial decisions on tax matters. In general primary sources represent the law itself as interpreted by the statutory, administrative and judicial entities of the government. They can be used in a case where a tax payer in arguing his or her case about their tax position in a court of law.

Secondary sources of tax information are documents that are provided by information vendors who provide research services, legal analysis and tax professionals. These sources usually rely on the professionalism and experience of individuals who have gained a reputation on tax law for advice and direction. Some examples of secondary sources include; legal periodicals like academic journals, legal analysts, scholars and tax law reporters. Secondary sources can be generally defined as interpretations of the law done by non-governmental entities.

b.

Professional research is usually done to enable one advance in his/her career in order to gain acceptance as an expert in that particular field. For one to join the ranks of a professional, they first need to prove their mastery of the knowledge in that particular profession. In our case, one needs to be aware of the law as provided by an authority. This means that one needs to argue his/her case in reference to the primary sources since these sources carry more weight in terms of understanding and experience as opposed to secondary sources that represent personal views that might be susceptible to bias. On this note, the type of authority which professional tax research conclusions should be based on are the primary sources.

5 0
3 years ago
Scarcity can be eliminated if
bogdanovich [222]

Answer:

The scarcity is the key problem that the economics are trying to find an answer to and try to mitigate by making the resources more productive.

The scarcity arises because of 2 main factors,

  1. The human wants are Unlimited
  2. The resources available to satisfy these wants are Limited

In theory, if we need to "eliminate" scarcity complete we should either Limit our Needs or find an Unlimited source of resources we require.

However, these are not practical solutions.

So because of this, economics try to utilize technology and other factors to harness the full potential of resources and to use them optimally.

Explanation:

6 0
3 years ago
David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either o
Nesterboy [21]

Answer:

Too little money                          

Explanation:

In the given case, David wanted to have all required resources and he also had complete knowledge of it. However he could not get them properly due to his budget constraints which lead to shut down of his business.

This case clearly depicts the problem of too little money as the risk of failure was not mentioned as such. Also the business David was willing to open was not relate to any chemical or defense industry so there was not much regulatory burden.

8 0
3 years ago
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