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Will someone double check my work on 4 multiple choice questions please? (TCO C) Which of the following is an advantage of a C corporation?
Will someone double check my work on 4 multiple choice questions please?
(TCO C) Which of the following is an advantage of a C corporation? (Points Shareholders not liable for tax based on the corporation's income : 5) Can elect to be taxed as a sole proprietorship. Subject to double taxation Unlimited liability Question 2. 2. (TCO C) Which is true of the provisions of IRC 351? (Points : 5) It allows for ordinary loss treatment. It applies to transfers of property for stock and debt instruments. It encourages corporate formation. Taxpayers must make an election to qualify under IRC 351. Question 3. 3. (TCO C) Which is true of the receipt of boot in a transfer under IRC 351? (Points : 5) Boot may cause a partially taxable event. Boot is treated no differently from stock received. Boot can be specifically allocated to one asset. Boot is something you wear on your feet. Question 4. 4. (TCO C) Which is true regarding the transfer of liabilities? (Points : 5) Transfer of liabilities never causes gain recognition. Transfer of liabilities should have a tax avoidance purpose. Generally, the assumption of liabilities is not considered boot for gain-recognition purposes. Assumption of liabilities is considered boot for gain-recognition purposes. Question 5. 5. (TCO F) Which is NOT true of IRC 1244 stock? (Points : 5) Ordinary loss treatment is limited to $50,000 per shareholder and $100,000 on a joint return. Stock loses its 1244 status when it is transferred Only individuals and partnerships are eligible for ordinary loss treatment. Only small business trusts are eligible for ordinary loss treatmentStep by Step Solution
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