Doris Is Going to Invest $90,000 in a Business Entity

question 7

Essay

Doris is going to invest $90,000 in a business entity. She will manage the business entity. Her projected share of the loss for the first year is $36,000. Doris' marginal tax rate is 33%. Determine the cash flow benefit of the loss to Doris if the business form is:
a.A general partnership.
b.An S corporation.
c.An LLC.
d.A C corporation.

---

Definitions:

Bicarbonate

An alkaline, bicarbonate ion (HCO3-) that acts as a buffer to maintain the pH balance in bodily fluids, particularly blood.

Intravascular Space

The inside area of blood vessels through which blood circulates within the body.

Coma

A state of deep unconsciousness in which a person cannot be awakened, fails to respond normally to pain or light, and lacks a normal wake-sleep cycle.

Antidiuretic Hormone

A hormone that helps the kidneys manage the amount of water in the body by influencing the absorption of water and the production of urine.