You have new items in your feed. Click to view.
Question and answer
Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and
shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.
They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate
share of income/gains/losses on thier individual income tax returns and be subject to taxation. There is an issue if the corporation has built in gains. When the corporation checks to partnership it is considered to have been liquidated.If the there are gains inside the corporation at liquidation then the corporation will pay tax at the highest marginal rate. Read more: Northwest Brands, Inc., is a small business incorporated in - JustAnswer ]
Get an answer
Original conversation
User: Northwest Brands, Inc., is a small business incorporated in Minnesota. Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.

Weegy: They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate share of income/gains/losses on thier individual income tax returns and be subject to taxation. There is an issue if the corporation has built in gains. When the corporation checks to partnership it is considered to have been liquidated.If the there are gains inside the corporation at liquidation then the corporation will pay tax at the highest marginal rate. Read more: Northwest Brands, Inc., is a small business incorporated in - JustAnswer ]
bongche|Points 2061|

User: You are interested in buying a new car and Bob let's you borrow one of the new cars on his lot for a week to test drive. You decide you like the car and when you visit Bob to drop off the car, he hands you the following document and a pen: May 1, 201x I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum. What type of instrument is this? Assuming an on-screen item otherwise qualifies, does this instrument meet the requirements for negotiability under the UCC?





Weegy: This is a promissory note. It may not be valid for lacking a last name. If it weren't for that it is probably legally valid. Oh, and another thing- it lacks a date for when the money has to be paid. [ Therefore I think the note is NOT valid. ]
Expert answered|thewolf010|Points 810|

Question
Asked 5/28/2012 8:33:49 PM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
Northwest Brands, Inc., is a small business incorporated in Minnesota. It's one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation? Explain your answer.
Weegy: They can avoid double taxation by checking the box on the foreign corporation, via Form 8832, [ electing to be classified as a partnership status.(preferably an LLC or an S-Corporation the effect is the same) Thus all income/losses will flow through to the shareholders/members and will not be taxed at the "Corporate/Partnership" level. The shareholders/members will report their proportionate share of income/gains/losses on thier individual income tax returns and be subject to taxation. There is an issue if the corporation has built in gains. When the corporation checks to partnership it is considered to have been liquidated.If the there are gains inside the corporation at liquidation then the corporation will pay tax at the highest marginal rate. ] (More)
Question
Expert Answered
Asked 5/28/2012 8:24:44 PM
0 Answers/Comments
26,602,998 questions answered
Popular Conversations
To form the comparative degree of adverbs, you should add which of ...
Weegy: Mikhail Gorbachev is responsible for glasnost, which called for openness and self-criticism in Soviet affairs. ...
12/9/2016 8:33:19 AM| 2 Answers
If you visit the Senate chamber during a session on an average day, ...
Weegy: Teamwork is a joint action by two or more people or a group, [ in which each person contributes with different ...
12/9/2016 10:52:15 AM| 2 Answers
Weegy Stuff
S
P
Points 178 [Total 450] Ratings 1 Comments 168 Invitations 0 Offline
S
P
Points 93 [Total 525] Ratings 0 Comments 93 Invitations 0 Offline
S
Points 63 [Total 63] Ratings 0 Comments 63 Invitations 0 Offline
S
P
P
Points 51 [Total 730] Ratings 0 Comments 51 Invitations 0 Offline
S
Points 42 [Total 318] Ratings 1 Comments 32 Invitations 0 Offline
S
Points 11 [Total 11] Ratings 1 Comments 1 Invitations 0 Offline
S
Points 8 [Total 8] Ratings 0 Comments 8 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.