4155586
Descrição
Quiz por Stephany Fox, atualizado more than 1 year ago
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Criado por Stephany Fox
quase 9 anos atrás
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Questão 1
Questão
Which of the following businesses would be better of in the case of a loss in the first year of operation?
Responda
-
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
Questão 2
Questão
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.
Responda
- True
- False
Questão 3
Questão
Which of the following people would be allowed to have income allocated to them?
Responda
-
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.
Questão 4
Questão
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?
Responda
-
Donor
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Donee
Questão 5
Questão
Buy-sell agreements carry little power among family members.
Responda
- True
- False
Questão 6
Questão
Subchapter K governs S corporations.
Responda
- True
- False
Questão 7
Questão
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?
Responda
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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
Questão 8
Questão
What is the main reason why dividends are the least-preferred method of drawing money from a business?
Responda
-
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.
Questão 9
Questão
A constructive dividend is an unreasonably high distribution to a shareholder that the IRS taxes at a different rate.
Responda
- True
- False
Questão 10
Questão
Thin capitalization occurs when a company has extremely high amounts of equity from a single partner or shareholder.
Responda
- True
- False
Questão 11
Questão
What is an accumulated earnings tax?
Responda
-
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
Questão 12
Questão
Where does most income come from in a personal holding company?
Responda
-
Revenue from sales to customers
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Revenues from performance of personal services
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Gains or income from investments
Questão 13
Questão
How much is the de minimus accumulation that will result in an accumulated earnings tax?
Responda
-
$250,000 average earnings per year
-
$250,000 total at a given time
Questão 14
Questão
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?
Responda
-
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
Questão 15
Questão
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
Responda
- True
- False
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