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In Late June 2015,Art Is Audited by the State and a Large

question 55

Essay

In late June 2015,Art is audited by the state and a large deficiency is assessed.In November of the same year,his Federal income tax return is audited by the IRS.What has probably happened?


Definitions:

Corporation Acts

Laws and regulations that govern the formation, operation, and dissolution of corporations.

Market Capitalization

The total value of a company's outstanding shares of stock, calculated by multiplying the current market price of one share by the total number of shares.

Authorized Shares

The highest number of shares a company is permitted to issue according to its articles of incorporation.

Common Shares

Equity securities that represent ownership in a corporation, entitling holders to vote on corporate matters and share in the profits through dividends.

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