To Which of the Following Entities Does the AMT Apply

question 19

Essay

To which of the following entities does the AMT apply?
∙ Sole proprietorship.
∙ General partnership.
∙ Limited partnership.
∙ LLC.
∙ S corporation.
∙ C corporation.

---

Definitions:

Chart of Accounts

A structured list of all the financial accounts used in the organization's general ledger.

Drawing and Capital Accounts

These refer to accounts used in partnerships and sole proprietorships where the 'drawing account' tracks withdrawals made by the owner(s) for personal use, and the 'capital account' tracks the owner's invested equity and retained earnings in the business.

Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Distribution of Cash

The process of allocating cash dividends to shareholders based on the number of shares held.