Acc 421 Week 6: Question 2

Acc 421 Week 6: Question 2

Answer questions 29 and 30 and write a 250 word response. See attachment. Use at least 1 reference

2018112705220829_and_30 (1)

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Question 29

1. Has limited liability – C
2. Greatest ability to raise capital – C
3. Subject to double taxation – C,
4. Not subject to double taxation – S, SP, P
5. Could be subject to accumulated earnings tax – C
6. Limits not type or number of shareholders – C
7. Has unlimited liability – SP, P
8. Sale of business can be subject to double taxation – C
9. Profits and losses affect the basis of an ownership interest – C, P, S
10. Entity’s liabilities affect the basis of an ownership interest – C, S
11. Distributions of earnings are taxed as dividend income to the owners – C

(525 words)