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kompoz [17]
3 years ago
15

6. Explain how liabilities of an LLC (taxed as a partnership) or an S corporation affect the amount of tax losses from the entit

y that limited liability company members and S corporation shareholders may deduct. Do the tax rules favor LLCs or S corporations?
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer:

LLC liabilities are included as part of member's tax basis while S corporation liabilities are not.

Tax rules favors LLCs.

Explanation:

LLC liabilities are included as part of a member's tax basis while S corporation liabilities are not included in an S corporation shareholder's tax basis other than loans from the shareholders.

This distinction is important because the amount of loss a member or shareholder may deduct is limited to his or her tax basis in either his or her LLC interest or shares. Thus in this particular regard Tax rules favors LLCs.

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Explanation:

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3 years ago
Mitchell has worked for a very large company for three years. During lunch one day he stood at the elevator and read the buildin
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It is departmentalized in a functional way

Explanation:

Functional departmentalization is the type of organizational structure based on common job functions. In Mitchell's case all similar jobs, like legal or marketing, are grouped in one place or on the same floor. This type of organization provides space for further employee's specialization by putting staff in places where their skills can further develop.

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You plan to invest some money in a bank account. Which of the following banks provides you with the highest effective rate of in
Lubov Fominskaja [6]

Answer:

Option (d) , Bank 4 offers the highest amount after a year

Explanation:

The total amount from each of the interest rates can be expressed as;

A=P(1+r/n)^nt

where;

A=Future value of investment

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t=number of years of the investment

a). Bank 1

P=x

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n=1

t=assume number of years=1

replacing;

A=x(1+0.061/1)^(1×1)

A=x(1.061)

A=1.061 x

b). Bank 2

P=x

r=6%=6/100=0.06

n=12

t=1

Replacing;

A=x(1+0.06/12)^(12×1)

A=x(1.005)^12

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c). Bank 3

P=x

r=6%=6/100=0.06

n=1

t=1

Replacing;

A=x(1+0.06/1)^(1)

A=1.0600 x

d). Bank 4

P=x

r=6%=6/100=0.06

n=4

t=1

A=x(1+0.06/4)^(4×1)

A=x(1+0.015)^4

A=x(1.061)

A=1.0614 x

e). Bank 5

P=x

r=6%=6/100=0.06

n=365

t=1

A=x(1+0.06/365)^(365×1)

A=1.0618

Option (d) , Bank 4 offers the highest amount after a year

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3 years ago
plaintiff was injured when the vehicle which he was operating was rear-ended by an 18-wheeler operated by driver and owned by ow
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A plaintiff is the person or entity who files a lawsuit with the court. The plaintiff is looking for a legal remedy by doing this. If the search is successful, the judge will rule in the plaintiff's favor and issue the necessary orders.

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2 years ago
Elevator speech is another term for
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Answer:

An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period of time.

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