Explain how entity income is taxed under approach

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U.S business entities are taxed according to one of three basic sets of rules - (1) separate legal entity, flow-through, or the "either/or" approach. (For this question, you may ignore the "quasi-flow" approach, which approximates "flow-through" taxation).

Question 1: Explain how entity income is taxed under each approach, and when each approach is applicable (which business entities are taxed under each approach).

Reference no: EM132466308

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