Answer:
Separate legal entity and taxation process
Explanation:
In a corporation, unlike in other forms of business, the owners and business are treated separately under the law. This principle is referred to as separate legal entity concept.
So for any contracts or deals entered into by a corporation, the owners cannot be held personally liable or asked to make good the losses incurred due to entering into those contracts unless of course if owners acted with mala fide intentions to earn personal profits. In short, owners personal assets cannot be taken away.
Secondly, the taxation slab applicable to corporations is also different in the sense corporations pay taxes on dividend paid. Secondly, when such dividend forms part of the revenue of shareholders, tax is again paid on that dividend income, this time by the shareholder. So in a way, shareholders get taxed twice, since in the first case, the company paying dividend recovers the tax on dividend paid from shareholders. This is referred to double taxation.
We do not have enough information to answer this, You would also need to know how often the interest is paid.
Answer:
C. $258,000.
Explanation:
The computation of the net income reported is shown below:
= Gambling winnings - Travel costs - Office expenses - Supplies - Business long-distance phone charges
= $275,000 - $8,000 - $5,000 - $3,000 - $1,000
= $258,000
For computing this we ignored the illegal cost related to the illegal parking and the illegal information
Answer:
B
Explanation:
you have recognized that it exists, you have not yet eliminated it or made any other decisions.
Answer:
C. investment income
Explanation:
Investment refers to any commercial activity undertaken to generate profits or grow wealth. It involves risking one's capital and resources to make more money. Investment income refers to the proceeds of investments such as interests paid, profits, dividends, and capital gain.
Teresa earned profits as a result of capital gains. The shares appreciated in value resulting in capital gain.