Question
Stephanie has recently received her veterinary license and contemplates joining a successful practice that has been in business for more than ten years. The entity
Stephanie has recently received her veterinary license and contemplates joining a successful practice that has been in business for more than ten years. The entity is established as a qualified personal service corporation. Her advisor tells her that certain requirements must be met for such and entity. They include all of the following, except:
a. if the practice decides to employ the hybrid method of accounting, which includes the cash method, it will be treated as using teh cash method of accounting
b. if stock is owned indirectly by the estate of a former employee of the practice, this counts towards the ownership test for up to five years after death
c. at least 95% of the stock must be owned, directly or indirectly, by employees of the veterinary practice who performs related services
d. at least 95% of activities are in performance of services in law. engineering, accounting, accounting, and veterinary practice, among others.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started