Question
1. Describe a situation (if any) where a partnership pays tax at the entity level. 2. Describe a method to allocate profit and separately allocate
1. Describe a situation (if any) where a partnership pays tax at the entity level.
2. Describe a method to allocate profit and separately allocate items other than ownership percentage. Also, give an example of when you might use this method.
3. The LLC is described as a disregarded entity. What does this mean?
4. What is the default tax return filing for a two-person LLC? Explain.
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Answer Part1 Situation where a partnership pays tax at the entity level Acorporations owners can save money by keeping some profits in the company In contrast owners of sole proprietorships partnershi...
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
