[Nail Salon] Thea and Her Friends Josef and Danny, All

question 28

Multiple Choice

[Nail Salon] Thea and her friends Josef and Danny, all U.S. citizens, want to open a nail salon. They would all like to avoid personal liability for debts of the business and/or wrongful acts of each other. They would also like to minimize taxation. Thea is in favor of a corporation and asks if there is any problem with that form of business. Josef and Danny say that they are concerned about double taxation with a corporation and that they are in favor of a partnership, even if personal liability is a concern. Thea said that she was concerned about the deductibility of losses if the corporate form was chosen. She did some research and suggested an S corporation to Josef and Danny which she claimed would avoid the problem of double taxation.
-Regarding the concerns of Josef and Danny about double taxation and Thea's suggestion regarding an S corporation, which of the following is true?

• A) Thea's suggestion will not solve the issue of double taxation because with both a regular corporation and with an S corporation, the corporation is taxed on income and shareholders are taxed again on dividends they receive.
• B) Josef and Danny are incorrect, and an S corporation is not needed for any double taxation issue because with both a general corporation and an S corporation, tax effects would be the same with the corporation being taxed on earnings and shareholders being taxed again on dividends.
• C) Thea is correct that S corporation shareholders report their income from the corporation only once, as personal income.
• D) Thea is correct in that double taxation may be avoided through the use of an S corporation, but this can be negated through taxation of dividends at the higher corporate rate regardless of the tax rate of the shareholder.
• E) Thea is correct that double taxation may be avoided through the use of an S corporation, but this may be negated by the fact that S corporations are taxed at a rate double that of general corporations.

Explain how our eyes adapt to see objects at different distances.

Grasp the importance of the fovea in detailed vision and color perception.

Understand the concept of the electromagnetic spectrum and its relation to vision.

Understand the structural differences and functions of rods and cones in the human retina.

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Definitions:

Vacancy Rate

A measure used in real estate to indicate the percentage of all available units in a rental property, such as apartments or offices, that are vacant or unoccupied at a particular time.

Tax

An obligatory financial contribution or another kind of levy enforced on taxpayers by government entities to support government operations and a range of public spending.

Price Paid

The sum of money given in exchange for a product or service when bought.

Price Received

Price received is the amount of money paid to a seller for goods or services, as agreed upon by the seller and the buyer.