MS In Accounting & Finance

Chapter 1 (13).docx.GRADED A+ 1. [LO1] What is meant by the term double taxation of corporate income? The term double taxation refers to the fact that under the U.S. system of taxation, corporate earnings are first taxed when earned by a C corporation and then are taxed a second time when the earnings are distributed to the shareholders as a dividend. 2. [LO1] How does the double taxation of corporate distributions affect whether an individual chooses to operate a business as a C corporati...

Chapter 1 (11).docx. GRADED A+ 1. [LO 1] In general terms, identify the similarities and differences between the corporate taxable income formula and the individual taxable income formula. Similarities: Both start with the gross income (income after exclusions) for the taxable year. Both formulas reduce gross income by deductions to determine taxable income. Both formulas apply tax rates to taxable income to determine the tax liability. Finally, both formulas reduce the tax liability by cr...

1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations, limited liability companies (LLCs), general and limited partnerships, and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules that determine how they and their ...

Chapter 1 (9).docx. VERIFIED 1. [LO 1, 2] How are defined benefit plans different from defined contribution plans? How are they similar? As the name suggests, defined benefit plans spell out the specific benefit the employee will receive on retirement. In contrast, defined contribution plans specify the maximum annual contributions that employers and employees may contribute to the plan. Defined benefit plans are funded by the employer while defined contribution plans are funded by the emp...

Chapter 1 (13).docx.GRADED A+ 1. [LO1] What is meant by the term double taxation of corporate income? The term double taxation refers to the fact that under the U.S. system of taxation, corporate earnings are first taxed when earned by a C corporation and then are taxed a second time when the earnings are distributed to the shareholders as a dividend. 2. [LO1] How does the double taxation of corporate distributions affect whether an individual chooses to operate a business as a C corporati...

Chapter 1 (10).docx. VERIFIED 1. [LO 1] What are the more common legal entities used for operating a business? How are these entities treated similarly and differently for state law purposes? Answer: Corporations, limited liability companies (LLCs), general and limited partnerships, and sole proprietorships. These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules t...

Chapter 1 (9).docx. VERIFIED 1. [LO 1, 2] How are defined benefit plans different from defined contribution plans? How are they similar? As the name suggests, defined benefit plans spell out the specific benefit the employee will receive on retirement. In contrast, defined contribution plans specify the maximum annual contributions that employers and employees may contribute to the plan. Defined benefit plans are funded by the employer while defined contribution plans are funded by the emp...

Chapter 1 (11).docx. GRADED A+ 1. [LO 1] In general terms, identify the similarities and differences between the corporate taxable income formula and the individual taxable income formula. Similarities: Both start with the gross income (income after exclusions) for the taxable year. Both formulas reduce gross income by deductions to determine taxable income. Both formulas apply tax rates to taxable income to determine the tax liability. Finally, both formulas reduce the tax liability by cr...