What is meant by the term "pass through entity"?Select one:a.The entity is subject to double levelincome taxb. All of these are correctC.The products that are produced bythe entity are passed down to lowerlevel producers to add valued.The profits pass down to the ownersto pay tax only at the ownership level

Pass through entity means that the profit which is earned by business entity is not taxed at entity…

What is meant by the term "pass through entity"? Select one: a. The entity is subject to double level income tax b. All of these are correct С. The products that are produced by the entity are passed down to lower level producers to add value d. The profits pass down to the owners to pay tax only at the ownershin level

What is meant by the term "pass through entity"? Select one: a. The entity is subject to double level income tax b. All of these are correct С. The products that are produced by the entity are passed down to lower level producers to add value d. The profits pass down to the owners to pay tax only at the ownershin level

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter1: An Introducti On To Taxation And Understa Nding The Federal Tax Law

Section: Chapter Questions

Problem 46DQ

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Similar questions

Under which set of circumstances would a customer be charged sales tax? Select one: a. Customer purchased a taxable product and the customer is a non-taxable entity. b. Customer purchased a non-taxable product and the customer is a taxable entity. c. Customer purchased a taxable product and the customer is a taxable entity. d. Choice a and b e. Choice b and c
The income tax consequences of a business transaction depend on which entity engages in the transaction because: Multiple Choice The amount of income from the transaction depends on which type of entity engaged in the transaction. The transaction may be taxable or nontaxable depending on which type of entity engaged in the transaction. The rate at which the income from the transaction is taxed depends on which type of entity engaged in the transaction. The character of the income from the transaction depends on which type of entity engaged in the transaction.
A company as a tax entity will___________. Select one: a. pay either companies tax or secondary tax on companies b. be exempt from value added tax if secondary tax on companies was paid in that cycle c. be taxed according to scale based on income d. have to register as a provisional taxpayer
1. Which of the following is not taxable income? a.Interest b.Hobby income c.Child support payments d.Royalties e.Dividends 2. Generally, for an activity to be treated as a trade or business, which of the following is required: a.No more than intermittent effort toward the activity b.Regular and continual effort designed to seek profit c.Always generate a profit d.Organization as a corporation or partnership 3. To be deductible as the cost of special work clothing or uniforms: a.The clothing need not be required as a condition of the job, but must not be suitable for everyday use. b.The clothing must be required as a condition of the job, but can also be suitable for everyday use. c.The clothing must not be suitable for everyday use and must be required as a condition of the job. d.Only the cost of the clothing is included; upkeep is not deductible.
Which of the following is not a sale and therefore is not subject to the value-added tax? Transfer, use or consumption not in the ordinary course of business of goods or properties ordinarily intended for sale or use in the course of business. Distribution or transfer to shareholders or investors of share in the profits of a VAT-registered person. Distribution or transfer to creditors in payment of debt. Consignment sales.
What is the controlling interest percentage for a business combination tax return? what does a “downstream” sale of inventory refer to and when is the profit recognized? What does an “upstream” sale of inventory refer to and when is the profit recognized? What is the difference between accounting under the “partial” equity and “full equity method?
a. Calculate the after tax income if (1) Corrie Company keeps the warehouse and (2) if Corrie Company sells the warehouse.
1.The definition of gross income in the tax law is: A. All items specifically listed as income in the tax law B. All cash payments received for goods provided and services performed C. All income from whatever source derived D. All income from whatever source derived unless the income is earned illegally 2.Which of the following is not taxable for income tax purposes? A.Prizes B.Severance pay C.Gifts D.Partnership income E.All of the above are taxable 3.All of the following items are taxable to the taxpayer receiving them, except: A.Life insurance proceeds B.Unemployment compensation C.Embezzled funds D.Prizes E.Gambling winnings
Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.
Which is a correct statement? * Gains between related parties are exempt from income tax Losses between related parties are deductible Gains between related parties are taxable All of the above Which is a deductible tax expense? * Surcharges and penalties O Stock transaction tax Real property tax on business properties O Special assessment
7.) If the amount paid by an investor (parent) is less than the proportional total of the estimated fair value of investee's (subsidiary's) assets acquired and liabilities assumed, the difference is recorded as ... a. Negative goodwill in the balance sheet of the investor. b. Gain from a bargain purchase in the income statement of the investor. Gain from a bargain purchase in the income statement of the investee. d. Allocated as a reduction to each of the asset and liability accounts when applying consolidation accounting by the investor. c.
What is the noncontrolling interest in Subsidiary income? Select one: a. The portion of Subsidiary income that is not included in consolidated income b. The allocation of difference between fair value and book value c. The difference between Parents reported income and Subsidiary reported income d. The part of Subsidiary income that is owned by shareholders other than Parents