LO.4 Tan, Inc., a C corporation, has been in existence for five years and has accumulated E
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LO.4 Tan, Inc., a C corporation, has been in existence for five years and has accumulated E & P of $990,000. It projects future earnings to continue at about $200,000 per year. David, Tan’s sole shareholder and CEO, receives an annual salary of $400,000.
a. What issues do David and Tan need to consider if their objective is to avoid double taxation?
b. Should avoiding double taxation be a goal of David and Tan? Why or why not?
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Kirti Kaushal
Having experience of more than 10 years is good enough to coach my students. Currently, I am working as an active supervisor of ACCA students. In my career, I helped students in financial accounting, management accounting, cost accounting, financial reporting, taxation, and audit. I also helped students publish their articles or papers in good journals. I also helped students with thesis and objective writing.
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Related Book For 
South Western Federal Taxation 2013 Corporations Partnerships Estates And Trusts
ISBN: 9781133495574
36th Edition
Authors: William H. Hoffman, William A. Raabe, James E. Smith, David M. Maloney
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