Examlex
Aubrey has been operating his business as a C corporation for the past 5 years. The corporation pays him a reasonable salary. The profits of the corporation, after paying Federal income tax, are distributed to him each year as a dividend. He is considering electing S status for his corporation in order to avoid double taxation. What factors should he consider assuming after-tax earnings will continue to be distributed to him?
Chequing Account
A type of bank account that offers easy access to funds for daily transactions, allowing for deposits, withdrawals, and cheque payments.
Cheque
A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.
Safety Stock
Extra inventory maintained to guard against stockouts due to variance in supply or demand.
Inventory Level
The quantity of goods and materials on hand and available for sale or use by a business at any given time.
Q18: A feeder organization is exempt from Federal
Q53: Bobby and Sally work for the same
Q70: Most of the U.S.states have adopted an
Q73: Which of the following statements regarding the
Q86: Sharon contributed property to the newly formed
Q116: To make a valid S election,the entity
Q123: Marsha is going to contribute the following
Q127: An S shareholder's basis is increased by
Q140: Discuss how a multistate business divides up
Q142: Trayne Corporation's sales office and manufacturing plant