Module 2 Assignment

https://smallbusiness.chron.com/advantages-disadvantages-ccorp-scorp-21120.html

Answer the following questions after reading the above links.

1.Name one of the three requirements to be classified as a personal service corporation.

2.Why would a taxpayer choose a C Corporation as opposed to an S corporation?

3.To receive tax-free recognition upon formation of a C Corporation, generally, what percentage of stock must the transferor(s) own immediately after the exchange?

4.Why would a taxpayer choose an S Corporation rather than a C Corporation?

5.How do you determine the basis of stock you receive in a C Corporation?

6.What tax form does a C Corporation file with the IRS to report its income, gains, losses, deductions, and credits?

7.What penalties does the IRS impose if a C Corporation files their tax return after the due date?

8.What are the permissible accounting methods allowed by the IRS for C Corporations?