FAC1602 Assignment 3 Second Semester 2022

FAC1602
ASSIGNMENT 3
SECOND SEMSTER 2022


BY: MTHOMBENI : 0767297208

1

, 1.A close corporation is a legal entity, which implies that it is not liable to pay for obligations and can
acquire assets in its own name.

a.
True

b.
False
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Which one of the following alternatives is correct?

a.
A close corporation is taxed separately from its members

b.
A close corporation is taxed 50% of the profits separately from its members and the other half is taxed
directly on the members in their personal capacity

c.
A close corporation is not taxed separately from its members as members are liable for the entity’s tax in
their individual capacity based on the balance of individual loans they owe to the entity

d.
A close corporation is taxed separately from its members only during its last year of operation
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Which one of the following alternatives is incorrect?

a.
2