Although shares of master limited partnerships can be purchased on one of the national stock exchanges, these companies are taxed like partnerships True False
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- Although shares of master limited partnerships can be purchased on one of the national stock exchanges, these companies are taxed like partnerships. True or False True FalseDividends received by a domestic corporation from shares in another domestic corporation are exempt from income tax. Group of answer choices True FalseIdentify the false statement: A. Dividends earned by a resident foreign corporation from a domestic corporation is inter-corporate dividend exempt from income tax. B. Dividends earned by a domestic corporation from a foreign source is inter-corporate dividend exempt from income tax, with certain conditions. C. Dividends earned by a domestic corporation from another domestic corporation is inter-corporate dividend exempt from income tax. D. A corporation may be formed by one person only. E. Every partnership shall be taxed in the same manner as a corporation. F. The share of a partner in the income of a professional partnership shall be subject to regular income tax. G. None of the above.
- Which, if any, of the following can be eligible shareholders of an S corporation? a. A Roth IRA. b. Partnership. c. A non-U.S. corporation. (Maybe) d. A nonqualifying trust. e. None of the above can own stock.1.Which of the following statements is true about a Subchapter S corporation? It is taxed like a partnership It is organized and operates like a partnership It is organized and operates like a limited partnership It is taxed like a publicly held corporationIn a limited liability company, profits are taxed as a partnership. True False
- Which of the following statements is true related to the conversion of a regular corporation to a limited liability company taxed as a partnership? A. In the conversion of a C corporation to an LLC taxed as a partnership, the transfer of appreciated assets from the liquidating corporations is not taxed at the corporate level. B. The corporation can contribute it's assets and liabilities into the new LLC in exchange for ownership interests. The corporation then distributes the LLC interests to it's shareholders in liquidation of the shareholders corporate stock. C. If the corporation distributes it's assets and liabilities to it's shareholders in liquidation of the new corporation, the shareholders are restricted from contributing these assets into the new partnership. D. The existence of substantially appreciated intangibles and goodwill with little or no tax basis has no consequences when converting a C corporation to an LLCwhich of the following statements regarding entities is true ? (a) c corporation is an incorporated entity chartered under federal law (b)an s corporation is a creature of state tax law (c)in a limited liability company none of the members bear personal liability for the debts and obligations of the entity (d)in a limited partnership the partners bear personal liability for the debts and obligations of the partnershipPlease indicate True or False: Subchapter S corp is a pass through entity.____________________. Subchapter S corp can have voting and nonvoting common stock.______________ Appreciated property distributions from Sub S corp are never taxable to shareholders. ___________ Partnerships can be eligible S corp shareholders.______________ S corps file Form 1120S tax returns._____________________
- In general terms, indicate how the following separate entities are subject to the Federal income tax. a. C corporations are separate taxable entities, (but not district from/distinct from) their shareholders. b. How are partnerships taxed?Income & losses pass-through to the partners/at the partnership level/at the partnership and partner level . c. S corporations ( never/normally/rarely) incur Federal income tax liabilities. d. Fiduciary entities are subject to Federal income tax when income (exceeds expenses/ is distributed to the beneficiaries/ is retained by the entity) .For Federal income tax purposes, a distribution from a partnership to a partner is treated the same as a distribution from a C corporation to its shareholders. True FalseUnder the Corporate form of business: the corporation is subject to double taxation a shareholder can be personally liable for the debts of the corporation. shareholders can bind the corporation through mutual agency shareholders need the approval of the board of directors to sell their shares of stock the life of the corporation is limited