Answer:
D. Limited Partnership
Explanation:
Limited partnership is a form of business where two or more people create an entity and in which the liability of the partners are limited to their initial investment in the business. Limited partnership has benefits of operating a business with combined expertise of two or more people without facing the complex challenges of operating a corporate corporation.
Since Toby and Keith want an a form of entity that is simple enough to operate a business without creating a product, distribute their earnings without retaining them and not having the intention of raising capital from any other investors, they should consider a limited partnership.
Limited partnership will be perfect for their need to only share earnings, and not doing other things that a corporate corporation is known for.
Answer:
Compute Taxable Income for 2020 224,000
Explanation:
the schedule below to compute deferred taxes at December 31, 2020 2020 2021 2022
Income Before Tax 250,000. (Financial Income) Differences Installment Sales deffered tax liability (96,000) 32,000 32,000 Depreciation deferred tax liability(30,000) 6,000 6,000 Unearned Rent deferred tax asset 100,000 (50,000) (50,000)Taxable Income Total of above224,000 Tax Rate 45% 40% 40%Income Tax Payable (Tax Income X Tax Rate)100,800 Deferred Tax Asset (unearned rent X Tax Rate) (20,000) (20,000) Deferred Tax Liability installment sales + Depreciation * tax rate 15,200 15,200
Answer: False
Explanation:
Operating Leverage is used to measure how much a change in sales translates to a change in income. In general, a higher operating leverage means that a small change in sales leads to a higher change in income. This is quite risky because it shows that even a small error when forecasting sales can lead to a larger error in the cash flow that will be expected from the sales. This makes forecasting harder and increases business risk.
Pinterest has the longest life
Answer:
C)
Explanation:
$500,000
Shantel meets the ownership test and both shantel and Daron meet the use test requirement, the couple may exclude $500,000 of gain.
