1. What are two tax consequences or problems can result if a C corporation with accumulated earnings...

Question:

1. What are two tax consequences or problems can result if a C with accumulated earnings and profits (Subchapter C earnings and profits”) elects Subchapter S?
2. List three methods of avoiding or reducing the so called double-tax.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...