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) .

Partnerships: a.Are not taxable entities. b.Are taxed in the same manner as individuals. c.File tax returns on Form 1041. d.File tax returns on Form 1120.

The aggregate versus entity approach is not only viewed from a specific tax perspective, but it is also being adapted by the IRS when it comes to auditing partnerships. How exactly is the IRS using this to its advantage?

If XYZ Corporation is a shareholder of BCD Corporation, how many times will BCD's before-tax income potentially be taxed? Has Congress provided any tax relief for this result? Explain.

All of the following persons are classified as employees under the federal income tax withholding law with the exception of a. the president of a corporation b. an officer of the federal government c. an elected official in the state government d. a first - line supervisor e. a partner

Please do not give solution in image format ?

1. Establishes the tax differences between individuals and corporations in the United States. 2. Explains Form M-1 and what it is used for. 3. Explains Form 1125-A and what it is used for.

Robert and Charles are trying to decide what form of business to form for their new company. They ask you the following question: Which of the following transactions would be considered by the IRS to be a taxable sale of assets? Changing the form of business from: a partnership to an LLC. a corporation to an LLC. All of the above. an LLC to a corporation.

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 LLC

Which of the following is wrong? The expenses of exempt corporations from exempt operations are deductible to its gross income from unrelated operations. University of the Philippines is exempt from income tax. A non-stock, non-profit institution organized for cultural purposes is exempt from income tax. None of the above