Acc 421 Week 6: Question 2
Answer questions 29 and 30 and write a 250 word response. See attachment. Use at least 1 reference
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Question 29
- Has limited liability – C
- Greatest ability to raise capital – C
- Subject to double taxation – C,
- Not subject to double taxation – S, SP, P
- Could be subject to accumulated earnings tax – C
- Limits not type or number of shareholders – C
- Has unlimited liability – SP, P
- Sale of business can be subject to double taxation – C
- Profits and losses affect the basis of an ownership interest – C, P, S
- Entity’s liabilities affect the basis of an ownership interest – C, S
- Distributions of earnings are taxed as dividend income to the owners – C
(525 words)