Ann is the sole shareholder of Salmon Corporation, a newly formed C corporation. Fran is the sole shareholder of Scarlet Corporation, a newly formed C corporation that is a personal service corporation. Both Ann and Fran plan to have their corporations elect a March 31 fiscal year-end. Will the IRS treat both corporations alike with respect to the fiscal year election? Why or why not?
Answer to relevant QuestionsWhich of the following C corporations will be allowed to use the cash method of accounting for 2015? Explain your answers. a. Jade Corporation, which had gross receipts of $5.3 million in 2012, $4.1 million in 2013, and $5 ...If the AMT is greater than the regular corporate tax, the corporation must pay the greater AMT. Discuss. Why might a corporation want to avoid corporate distributions? SafeCo Manufacturing Company pays $20 to purchase materials from related suppliers in Canada. SafeCo incurs $15 in labor costs at its factory in the United States to fabricate and assemble a garden tool. The company also ...Tern Corporation produces and sells refrigerators for outdoor use (e.g., patios, porches, and verandas). Its major manufacturing facility is in Georgia, but it also has a smaller plant in Nicaragua. Gross receipts for the ...
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