Gwen and Travis Organized a New Business as an LLC

question 72

Multiple Choice

Gwen and Travis organized a new business as an LLC in which they own equal interests. The new business generated a $10,000 operating loss its first year. Travis has no other taxable income for the current year, but expects to have sufficient taxable income in future years to pay tax in the 24% tax bracket. Which of the following statements regarding Travis' tax savings from the current LLC loss is true?

• A) Travis can carry his share of LLC loss back two years as a net operating loss, and request an immediate tax refund of $1,200.
• B) Travis can carry his share of LLC loss forward, and will get tax savings only when he generates future income.
• C) Travis can only use his share of the LLC loss in the current year, and will receive no tax savings.
• D) The LLC will reallocate Travis share of the loss to Gwen, who can claim $1,750 of additional tax savings.

Comprehend legal aspects concerning labor market discrimination in the United States.

Grasp the signaling theory of education and its relevance to labor market outcomes.

Acknowledge the factors beyond education and experience that contribute to wage determination.

Understand the concept of efficiency wages and their effects on labor market outcomes.

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Definitions:

Desktop Publishing Program

Software designed for creating visual communications such as brochures, business cards, and flyers, enabling users to combine text and graphics.

Word Processing Program

Software used for the creation, formatting, and editing of text documents.

Presentation Graphics Program

Software designed to create visual aids and presentations to communicate ideas, data, and information effectively.

Intranet

A private network accessible only by an organization's staff, often serving as a secure platform for information sharing and communication.