4155586
Descripción
Test por Stephany Fox, actualizado hace más de 1 año
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Creado por Stephany Fox
hace casi 9 años
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Pregunta 1
Pregunta
Which of the following businesses would be better of in the case of a loss in the first year of operation?
Respuesta
-
Sue's Donut Shop, which is a partnership and a flow-through entity
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Bill's Cake Emporium, which is a corporation
Pregunta 2
Pregunta
The main reason that tax savings are greater for flow-through entities with losses in the first year than for corporations with losses in the first year is related to the time value of money.
Respuesta
- True
- False
Pregunta 3
Pregunta
Which of the following people would be allowed to have income allocated to them?
Respuesta
-
Mary and her brother Arthur are partners in a car repair business. Arthur was a mechanic's apprentice for 5 years and Mary has always been a professional violinist.
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George and Harry are cousins. They own and operate a barber shop as a partnership. Both studied went to technical college to learn to do hair.
Pregunta 4
Pregunta
In the event that a federal gift tax is leveraged on a transfer of equity in a business between family members, who must pay the tax?
Respuesta
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Donor
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Donee
Pregunta 5
Pregunta
Buy-sell agreements carry little power among family members.
Respuesta
- True
- False
Pregunta 6
Pregunta
Subchapter K governs S corporations.
Respuesta
- True
- False
Pregunta 7
Pregunta
Sandra wants to open a pet store with her daughter Linda. Sandra knows she does not want to create an S-corp, but she does not want to have bear the full liability of a partnership. What are some viable options for her?
Respuesta
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LLP
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C-Corp
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LLC
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Sole proprietorship
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Add another member
Pregunta 8
Pregunta
What is the main reason why dividends are the least-preferred method of drawing money from a business?
Respuesta
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There are large fees associated with distributing dividends.
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Distribution of dividends can negatively affect the business' credit rating.
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Dividends come from after-tax income, while other methods of drawing money usually come from before-tax income.
Pregunta 9
Pregunta
A constructive dividend is an unreasonably high distribution to a shareholder that the IRS taxes at a different rate.
Respuesta
- True
- False
Pregunta 10
Pregunta
Thin capitalization occurs when a company has extremely high amounts of equity from a single partner or shareholder.
Respuesta
- True
- False
Pregunta 11
Pregunta
What is an accumulated earnings tax?
Respuesta
-
An additional tax on any corporation formed for the purpose of avoiding income tax by accumulating earnings and profits instead of dividing and distributing them
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A special tax on an entity formed with the main goal of earning nonbusiness income like dividends, interest, rents, and royalties
Pregunta 12
Pregunta
Where does most income come from in a personal holding company?
Respuesta
-
Revenue from sales to customers
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Revenues from performance of personal services
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Gains or income from investments
Pregunta 13
Pregunta
How much is the de minimus accumulation that will result in an accumulated earnings tax?
Respuesta
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$250,000 average earnings per year
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$250,000 total at a given time
Pregunta 14
Pregunta
One of the top ways to pull money from an S-corp without paying actual dividends is through salaries. Which of the following are other ways?
Respuesta
-
Allow the business to use a building owned by an owner so they can collect rent payments
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Form a flow through entity with the sole purpose of collecting interest payments
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Allow an owner to loan money to the business so they can collect interest payments
Pregunta 15
Pregunta
If you want to form a business with recently formulated regulations, no self-employment tax, and little liability as an individual owner, you should form an S-corp
Respuesta
- True
- False
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