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
18,408,830 questions answered
Popular Conversations
3x + 1 User: Factor 25x 2 + 10x + 1.
Weegy: the answer is (1+5 x)^2 User: The length of a rectangle is 3 more than twice the width. The area of the ...
11/21/2014 9:59:24 AM| 4 Answers
Multiply 3X 1 1/4 User: subtract the fractions and simplify the ...
Weegy: 13/15 - 1/5 = 13/15 - 3/15 = 10/15 = 2/3 User: Divide the fractions and simplify the answer 60 divide by 2 2/3 ...
11/21/2014 8:14:33 PM| 3 Answers
Class C helmets are made of aluminum and do not provide protection ...
Weegy: Class C helmets are made of aluminum and do not provide protection from: Electrical hazards. (Class C ...
11/21/2014 1:44:29 AM| 2 Answers
Which pronoun agrees with the antecedent? Both carrots and sweet ...
Weegy: Both carrots and sweet potatoes get ITS color from beta-carotene.
11/21/2014 6:49:00 AM| 2 Answers
One weakness of the British army was fighting on foreign soil.
Weegy: One weakness of the British army was fighting on foreign soil. TRUE.
11/21/2014 7:22:57 AM| 2 Answers
What is translation?
11/21/2014 7:50:29 AM| 2 Answers
Which base is in RNA, but not in ...
11/21/2014 7:46:32 AM| 2 Answers
Identify the solution(s) of the system of equations, if any. -4x - 2y ...
Weegy: -4X-2y=12 -12X-6Y=36 X=(12+2Y)/-4 substitute x to second equation -12[(12+2Y)/-4]-6Y=36 36+6Y-6Y=36 0=0 ...
11/21/2014 9:54:31 AM| 2 Answers
What is the equation of the line that passes through (0, -2) and ...
Weegy: The equation of the line that passes through (0, -2) and has a slope of 0 is y = -2. User: Find two ...
11/21/2014 10:04:27 AM| 2 Answers
The principle of dominance states that a. all alleles are ...
Weegy: Every allele is a _ d. dominant or recessive _ allele. User: In pea plants, yellow peas are dominant over ...
11/21/2014 10:23:12 AM| 2 Answers
Weegy Stuff
S
L
1
L
P
C
1
P
C
1
L
P
C
1
Points 2298 [Total 14009]| Ratings 10| Comments 2198| Invitations 0|Offline
S
L
Points 1255 [Total 3541]| Ratings 0| Comments 1255| Invitations 0|Offline
S
L
Points 686 [Total 1207]| Ratings 6| Comments 626| Invitations 0|Offline
S
1
L
1
L
P
P
L
P
Points 682 [Total 14056]| Ratings 0| Comments 682| Invitations 0|Online
S
Points 421 [Total 453]| Ratings 1| Comments 411| Invitations 0|Offline
S
1
L
L
Points 211 [Total 6605]| Ratings 0| Comments 211| Invitations 0|Offline
S
L
Points 149 [Total 1445]| Ratings 3| Comments 119| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 0| Comments 0| Invitations 5|Offline
S
Points 46 [Total 46]| Ratings 3| Comments 6| Invitations 1|Offline
S
Points 40 [Total 40]| Ratings 4| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.