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3 years ago

Describe the advantages that llc and S corporation‘s passed through entitles have relative to c-corporations

Business

1 answer:

Anit [1.1K]3 years ago

4 0

Answer:

Single-layer taxation

Explanation:

Limited liability companies and S corporations are able to pass through their income as the owner's income. "LLC and S corporations" are entities, unlike the C corporation.

Pass-through entities have a taxation advantage over non- pass-through entities. In tax computation, a pass-through entity passes its income or losses as those of its owners; hence the entity will not be subject to income tax. The business profits are treated as income to the owners, who will pay individual tax income. LLC and S corporation have only one layer of taxation.

A C corporation is subject to taxation as an independent entity. The directors have to file corporate tax returns on behalf of the business based on the company profits. The business profits are distributed to the shareholder as dividends. The shareholders have to pay tax on the dividend received as part of their income tax. The shareholders are double-taxed, as the business owners- corporate tax and as individuals - income tax. Double layer taxation.

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Following are the transactions of Sustain Company.

MrMuchimi

Answer:

Jun-01

Dr Cash 18,500

Cr Common Stock T. James 18,500

Jun-02

Dr Furniture 11,500

Cr Account Payable 11,500

Jun-03

Dr Prepaid Insurance 2,100

Cr Cash 2,100

Jun-04

Dr Account Receivable 10,500

Cr Sales 10,500

Jun-12

Dr Account Payable 11,500

Cr Cash 11,500

Jun-20

Dr Cash 10,500

Cr Account Receivable 10,500

Jun-21

Dr Cash 17,500

Cr Common Stock T. James 17,500

Jun-30

Dr Cash 12,500

Cr Unearned Income 12,500

Explanation:

Preparation of Journal entries

Jun-01

Dr Cash 18,500

Cr Common Stock T. James 18,500

(Invested $18,500 as capital contribution)

Jun-02

Dr Furniture 11,500

Cr Account Payable 11,500

(Purchased furniture on credit)

Jun-03

Dr Prepaid Insurance 2,100

Cr Cash 2,100

(Cash Paid for 12 month insurance)

Jun-04

Dr Account Receivable 10,500

Cr Sales 10,500

(Billed customer )

Jun-12

Dr Account Payable 11,500

Cr Cash 11,500

(Cash paid to reclaimed wood)

Jun-20

Dr Cash 10,500

Cr Account Receivable 10,500

(Cash collected form customer)

Jun-21

Dr Cash 17,500

Cr Common Stock T. James 17,500

(Addition capital contribution)

Jun-30

Dr Cash 12,500

Cr Unearned Income 12,500

(Received advance for service to be performed)

8 0

3 years ago

Only 3 days after the attacks of 9-11, Northwestern Mutual began providing death benefits to surviving families of the first res

Luda [366]

Answer:

Empathy

Explanation:

Empathy is the ability of a person of business entity to understand the thoughts, feelings, and emotions of their customers. It is the ability to personalise the customer's situation.

This makes the business go the extra mile in solving the customer's problem.

In this scenario Northwestern mutual felt the pain and understood the financial needs of the families of first responders during the 9-11 attack.

So without official death certificates they paid death benefits only 3 days after the attacks.

Other insurance companies however did not empathise with their customers and only paid death benefits some months to a year.

5 0

4 years ago

Which of the choices describes how the effects of import tariffs and import quotas are different? The domestic cost of an import

tatuchka [14]

Answer:

Quotas do not affect the equilibrium price, whereas tariffs do not affect the equilibrium quantity.

Explanation:

The import tariff decreases the import quality from AD to CB and increases the price of the good from P to P*. The import restricting effect and consumption effect is same for quotas and tariff. So, the deadweight loss from them is the same from quotas and tariff (HIJ and GEF).

Please observe the image attached.

However, tariff enables the government to increase their revenue from the imports while import quotas precludes such revenue (GEHI). Thus, the cost tariff is lower than the import quotas imposed.

3 0

3 years ago

In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara, in Northern California, when J

saw5 [17]

Answer:

Explanation:

Escrow service is a form of risk mitigation medium in the course of a transaction , where a third party receives and disburses money for the main transacting parties as can be seen in the scenario given .

Nothing is really wrong in the transaction as suspected by the Wrights but a difference in the rules guiding escrow in North and South Carolina.

Escrow instruction are due for signing in South Carolina by both parties immediately after they have all signed the purchase agreement , about 60 days ahead of the actual close of the escrow date , while in North Carolina , escrow are not signed until the day before the actual close of escrow.

3 0

4 years ago

A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________

iragen [17]

Answer:

Depreciation Expense, Credit, Accumulated Depreciation.

6 0

3 years ago

Describe the advantages that llc and S corporation‘s passed through entitles have relative to c-corporations￼￼￼

Describe the advantages that llc and S corporation‘s passed through entitles have relative to c-corporations