Red Corporation, a C Corporation That Has Two Equal Shareholders

question 13

Essay

Red Corporation, a C corporation that has two equal shareholders, earned $450,000 during 2012. Orange Company, a partnership that has two equal partners, earned $450,000 during the year. Red did not make any distributions to its shareholders, and Orange's partners did not make any withdrawals. Contrast the tax treatment of the shareholders of Red Corporation and the partners of Orange Company.

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Definitions:

Color-Sensitive Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision.

Retinal Cells

Specialized cells located in the retina of the eye that are responsible for converting light into neuronal signals.

Wavelength

The length between one wave crest and the following one, specifically referring to sound waves or electromagnetic waves.

Reddish

Having a color or tint that is somewhat red; appears slightly red.