Logan, a 50-percent shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations with losses from S corporations. Assume MG has a $109,000 tax loss for the year, Logan's tax basis in his MG stock was $154,500 at the beginning of the year, and he received $79,500 ordinary income from other sources during the year. Assuming Logan's marginal tax rate is 24 percent, how much more tax will Logan pay currently if MG is a C corporation compared to the tax he would pay if it were an S corporation?

Multiple Choice

6,000

13,080

19,080

$0

Which of the following legal entities must file documents with the state to be formally recognized by the state?

Multiple Choice

Limited liability company

General partnership

Sole proprietorship (non LLC)

None of the choices is correct.

If a corporation's cash charitable contributions exceed the charitable contribution deduction limit, what kind of booktax difference is created?

Multiple Choice

Temporary; favorable.

Permanent; favorable.

Permanent; unfavorable.

Temporary; unfavorable.