The remaining question facing tony and susan is which

Reference no: EM13590256

Tony and Susan are starting a retail business selling formal wear for men and women. They estimate profits and losses for the next five years to be: ($20,000), ($10,000), ($5,000), $10,000, and $50,000 respectively. Susan will work full time in the store while Tony will be involved in managing the operations. Susan is married to Tom and is in the 28% marginal tax bracket. Tony is single and has other sources of income that put him in the 28% marginal tax bracket. Susan will be paid a salary of $30,000 for the first five years, after which her compensation will be reviewed. Tony and Susan each contribute $50,000 to get the business started.

The remaining question facing Tony and Susan is which business form to use for the business. They believe they should operate as a partnership but have been informed that forming a corporation might be a better option since it would limit their liability. Prepare an analysis to determine whether Tony and Susan should operate their business as a partnership or a corporation

Reference no: EM13590256

Questions Cloud

A scientist obtains the number 0045006700 on a calculator : a scientist obtains the number 0.045006700 on a calculator. if this number actually has four 4 significant figures how

Assuming a perpetual inventory system and using the last-in : perpetual inventory using lifobeginning inventory purchases and sales for item cz83 are as followsoctober

If person have mba with a good gpa do person need to have : if person have mba with a good gpa do person need to have gmat exam if yes then what score in order to get admission in

The speed of 3oz tennis ball is changed from 60 fts in one : question the speed of 3oz tennis ball is changed from 60 fts in one direction to 80fts in the opposite one as a racket

The remaining question facing tony and susan is which : tony and susan are starting a retail business selling formal wear for men and women. they estimate profits and losses

Two identical ships moving at right angles to each : question two identical ships moving at right angles to each othercollide and stick together. one has an initial

There are 13 units of the item in the physical inventory : periodic inventory using fifo lifo and weighted average cost methods.the units of an item available for sale during

You have recently accepted a position with vitex inc the : you have recently accepted a position with vitex inc. the manufacturer of a popular consumer product. during your first

Your cars fan belt turns a pulley at 300 revs when you : question your cars fan belt turns a pulley at 3.00 revs . when you step on the gas for 1.25s the rate increases

User Account

All Pages