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Youthglow Products, Incorporated is a C corporation. During the year, the company sold business assets held long-term at a gain. Which is TRUE about the
Youthglow Products, Incorporated is a C corporation. During the year, the company sold business assets held long-term at a gain. Which is TRUE about the tax treatment of the gains? A. Youthglow products will pay 21% tax on the gains on Form 1120. B. The gain will be passed through to the shareholders returns on Sch K1 (Form 1120) and taxed on Form 1040 as long term capital gain. C. The gain will be allocated between all shareholders who perform services for the company and included in Form W2 wages. D. Proceeds from the sale are included in Youthglow Products gross receipts. Adjusted basis of the assets is included in cost of goods sold (COGS) on Form 1120-S.
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