What considerations should the owners make in termination

Assignment Help Financial Accounting

Reference no: EM13144193

A C corporation has incurred substantial losses and the owners have decided to close the business. What considerations should the owners make in this termination? Should they consider making an S election and then later, terminating the S corporation? If you were their tax advisor, what would you recommend?

Reference no: EM13144193

Questions Cloud

Relative advantages of partnership : What are the relative advantages of partnership versus limited partnership as a form of doing business? What legal principles are most likely to bite partnerships?

Production-volume overhead variance : Does the production-volume overhead variance measure the difference between the 54,000 and 46,000, or the difference between the 46,000 and the actual monthly production? Explain.

Calculate the specific heat capacity of the metal in j/g°c : If 69.5 kJ of heat is applied to a 1034 g block of metal, the temperature of the metal increases by 11.4°C. Calculate the specific heat capacity of the metal in J/g°C.

What is the company times interest earned ratio : Tree Frog Company is organized as a LLC and pays no income taxes. The company has fixed interest expense of $5,750, Sales of $253,000 and variable expenses of $189,750. What is the company's times interest earned ratio?

What considerations should the owners make in termination : What considerations should the owners make in this termination? Should they consider making an S election and then later, terminating the S corporation? If you were their tax advisor, what would you recommend?

Calculate the specific heat capacity of the metal in j/g°c : If 69.5 kJ of heat is applied to a 1038 g block of metal, the temperature of the metal increases by 11.4°C. Calculate the specific heat capacity of the metal in J/g°C.

Total unamortized bond premium : On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $175,000. Jenks should record, as a result of this conversion

What is an inadvertent termination of an s election : What is an inadvertent termination of an S election? How does an S corporation and its shareholders rectify an inadvertent termination? What could happen if a company fails to rectify the termination?

Discuss factors or conditions that contribute : Discuss factors or conditions that contribute to such a possibility. How can additional information and supplementary data (beyond financial statements) help prevent this possibility?

User Account

All Pages