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The primary objective of business income tax returns is to: a.) Identify the amount of income tax due and payable by the business, regardless of
The primary objective of business income tax returns is to: a.) Identify the amount of income tax due and payable by the business, regardless of how the business is organized. b.) Identify the amount of taxable income that owners of all businesses must report on their personal income tax returns, regardless of how the business is organized. c.) Identify the amount of business income subject to taxation, regardless of how the business is organized. Business income tax returns for a sole proprietorship differ from those for a Subchapter C corporation, Subchapter S corporation, a partnership, and a limited liability company (LLC) because: a.) Withdrawals are allowed as a deduction on Schedule C for a sole proprietorship, but distributions and dividends are disallowed as deductions on all other business income tax returns. b.) Net worth is not captured on Schedule C for a sole proprietorship, but net worth is reported on all other business income tax returns. c.) Only current assets and current liabilities are reported on the balance sheet for a sole proprietorship while all other business income tax returns include a full balance sheet
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