West Virginia Tank and Tower Inc. (TnT) bought and sold used water towers. Metal Raincloud (Cloud) manufactured
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West Virginia Tank and Tower Inc. (TnT) bought and sold used water towers. Metal Raincloud (Cloud) manufactured water towers. One of its suppliers, Gravity Flow Inc., an S corporation, developed and patented a new type of valve for such towers. Wanting to hasten the new valve’s development but not wanting to cause Gravity Flow to lose its S corporation status, Cloud offered L. Quidity, the owner of Gravity Flow, $1,000,000 for her to invest in her corporation and its new product. In return Quidity agreed to pay half her earnings from Gravity Flow to Cloud. Will the IRS allow Gravity Flow to maintain its S corporation status as a result? Why or why not?
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IRS will allow the S corporation status of Gravity Flow Inc because it will not aff...View the full answer
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Labindao Antoque
I graduated in 2018 with a Bachelor of Science degree in Psychology from Dalubhasaan ng Lungsod ng San Pablo. I tutored students in classes and out of classes. I use a variety of strategies to tutor students that include: lecture, discussions about the subject matter, problem solving examples using the principles of the subject matter being discussed in class , homework assignments that are directed towards reinforcing what we learn in class , and detailed practice problems help students to master a concept. I also do thorough research on Internet resources or textbooks so that I know what students need to learn in order to master what is being taught in class .
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