How Does Equity Crowdfunding Differ from Other Types of Crowdfunding

question 76

Multiple Choice

How does equity crowdfunding differ from other types of crowdfunding?

• A)Investors are given the opportunity to become company shareholders.
• B)Funds are raised from a community of angel and venture capitalists.
• C)Funds are provided by the government.
• D)Financial institutions are allowed to raise funds on these sites.

Understand the AMT exemption amounts for corporations and the phase-out thresholds.

Determine the tax liability and taxable income of a corporation based on given financial and operational data.

Understand the qualifications and disqualifications for electing Subchapter S status for corporations.

Grasp the differences in basis calculation for contributed property in corporation formation scenarios.

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Definitions:

Debits

Entries on the left-hand side of an account that represent the increase in assets or expenses or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.

Debt Ratio

A ratio indicating a company’s leverage by comparing its total debt to its total assets.