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Finger [1]
4 years ago
14

S corporation shareholders are subject to self-employment tax on business income allocations from the S corporation if they are

actively involved in the S corporation’s business.
A) TRUE
B) FALSE
Business
1 answer:
Mila [183]4 years ago
3 0

Answer:

The statement is false

Explanation:

S corporations are pass through corporations, which means income earned is passed to the owners and they are taxed at individual level.

Shareholders of S corporation earns income in the form of wages and distributions. Wages are charged with payroll taxes. S corporation shareholders are not subject to self-employment taxes which is an advantage for them.

Therefore, the statement is false

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James has $1500 to open a checking account. He can maintain a monthly balance of at least $1000. He plans to use the ATM four ti
Tanya [424]

Answer: Account A

Explanation:

Account A would be best for James as it provides the most value for the things he would like to do.

  • ATM charges are free with this account so he can use the ATM four times in the month at no charge
  • He would pay no monthly fees as he uses direct debit
  • He would pay an annual fee of $0
  • And as online payments are free, he would not have to worry about getting charged for the 8 bills to process in the month.

3 0
3 years ago
True or false â the permanent accounts are also closed at the end of the period.
horsena [70]
I think its true the most
6 0
3 years ago
Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup
nignag [31]

Answer:

NPV = $35,868.06

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.  

NPV for Project Nuts

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-600,000

Cash flow each year from year 1 to 6 = 146,000

I = 10%

NPV = $35,868.06

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
If Year 1 sales equal $900, Year 2 sales equal $1008, and Year 3 sales equal $1170, the percentage to be assigned for Year 2 in
kenny6666 [7]

Answer:

The percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is 112%

Explanation:

In order to calculate the percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, we would have to make the following calculation:

Year 2 trend analysis % = $ 1,008 sale in Year 2 / $ 900 Year 1 sale

Year 2 trend analysis % = $1,008 / $900

Year 2 trend analysis %= 112%

The percentage to be assigned for Year 2 in a trend analysis, assuming that Year 1 is the base year, is 112%

3 0
3 years ago
You are the lead team member of a warranty claim team within the Andrews Company. Your team has had an average year, with profit
enot [183]

Answer:

"Perhaps we should explore which stakeholders would stand to win or lose from such a decision."

Explanation:

An ethical decision is one that is aimed towards generating trust from other parties. It shows responsibility, fairness, and caring towards a person.

In this scenario your manager suggests you postpone processing any existing claims in the 4th quarter until the new fiscal year (some claims are as high as $150,000).

The best ethical response will be - Perhaps we should explore which stakeholders would stand to win or lose from such a decision.

This will result in self reflection about who will be affected by the decision. The consideration will not be just the immediate 4th quarter impact of postponing the warranty claims.

This is the most ethical decision among the options.

5 0
4 years ago
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