Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: 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.
A: 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.
25,809,150 questions answered
Popular Conversations
Skipping stitches may be the result of using A. a bobbin tension that ...
Weegy: Skipping stitches may be the result of using a needle that is too fine for the thread.
8/23/2017 11:39:06 AM| 0 Answers
Which of the following countries has the highest number of Fortune ...
Weegy: UNITED STATES has the highest number of Fortune 100 companies.
8/23/2017 1:32:10 AM| 0 Answers
Plot, character, and setting do not affect one another. True False ...
Weegy: Plot, character, and setting do not affect one another. FALSE. User: The words he said are considered ...
8/18/2017 8:46:59 AM| 0 Answers
Weegy Stuff
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 4 [Total 4] Ratings 0 Comments 4 Invitations 0 Offline
S
Points 3 [Total 3] Ratings 0 Comments 3 Invitations 0 Offline
S
Points 2 [Total 3] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 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
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.