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.

---

Definitions:

Slave Morality

A concept in Nietzsche's philosophy contrasting master morality, suggesting that moral values originated in the oppressed, lower class and focus on virtues like humility and sympathy, as opposed to the aristocratic values of pride and power.

Master Morality

A concept from the philosophy of Friedrich Nietzsche that values pride, strength, and nobility as qualities of the "master," as opposed to the "slave" morality, which values kindness, empathy, and sympathy.

Nietzsche

Friedrich Nietzsche was a German philosopher, cultural critic, poet, and philologist known for his critique of traditional morality and religion, as well as for his concept of the "will to power."

Traditional Morality

Ethical guidelines and values that are passed down through generations within a culture or society, often based on religious or philosophical beliefs.