Prudence was named a shareholder in her law firm, which operates as an S corporation. Her payments
Question:
Prudence was named a shareholder in her law firm, which operates as an S corporation. Her payments into the firm’s capital were to start in approximately nine months, when an audit would determine the full value of the firm and a new corporate year would commence. Paperwork with the pertinent state offices was completed, naming Prudence as a shareholder and director and adding her name to that of the firm. However, Prudence left the firm eight months after the announcement, that is, before she paid any money for shares. Is Prudence liable for tax on her share of the entity’s earnings for the eight months?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
Yes it is Prudences ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
1. Use the following information to complete Ginger Snaps 2019 tax return. If information is missing, use reasonable assumptions to fill in the gaps. 2. You will need the following forms and...
-
Focus on the short term: If A, an entertainer, were averaging $1 million a year of taxable income from his business, would you advise A to incorporate as a device to save taxes? Would you advise A to...
-
Carmin Kovach is single and has two children from her previous marriage. Anika, 9, lives with Carmin. Julius, 11, lives with his father, Ray. Carmin pays alimony of $400 per month to Ray. The...
-
Cooper Movie Studio Corp. makes movies and is interested in lowering its operating costs for the following year, while maintaining the high quality and appeal of its movies. Cooper's management is...
-
In practice do we have progressive, proportional, or regressive personal income tax rate system?
-
Rita is a self-employed taxpayer who turns 39 years old at the end of the year (2018). During 2018, her net Schedule C income was $300,000.This was her only source of income.This year, Rita is...
-
Two fixed, horizontal, parallel plates are spaced 0.4 in. apart. A viscous liquid \(\left(\mu=8 \times 10^{-3} \mathrm{lb} \cdot \mathrm{s} / \mathrm{ft}^{2}, S G=0.9 ight)\) flows between the plates...
-
Flom Company is considering the cash purchase of 100% of the outstanding stock of Vargas Company. The terms are not set, and alternative prices are being considered for negotiation. The balance sheet...
-
Hurst, Inc. sold its 8% bonds with a maturity value of $9,000,000 on August 1, 2019 for $8,838,000. At the time of the sale the bonds had 5 years until they reached maturity. Interest on the bonds is...
-
Tiny Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement indicated the following: Balance, beginning of the month...
-
Katie is a one-third owner of an S corporation. After a falling out with the other shareholders, Katie signed an agreement early in January 2020. Under the terms of the agreement, Katie took $200,000...
-
CPA Myrna forgot to tell her client, Freddie, to accelerate the payment of state income and property taxes in a year when Freddie was in an unusually high tax bracket. Upon discovering the error, the...
-
Consider the Al-Si phase diagram. What are the percentages of the a-phase and liquid for an Al-5 wt% Si alloy at 620, 600, and 578C? What are the percentages of and phases in this alloy for an Al-5...
-
Acme Company Balance Sheet As of January 5, 2023 (amounts in thousands) Cash 13,700 Accounts Payable 2,000 Accounts Receivable 3,200 Debt 3,600 Inventory 5,100 Other Liabilities 900 Property Plant &...
-
Being culturally competent is essential in providing quality care. When caring for a person with Autism, what are two cultural considerations to incorporate into this care?
-
Dylan has job income of $8,500 and no tax liability. He has one child, Kayla, who is 10 years-old. The refundable portion of the $2,000 child tax credit is how much? (Do not use dollar signs,...
-
Discuss why the ten principles of conflict are important human resource develelopmentThis discussion should be based on your understanding of the power point provided as well as work experience. The...
-
Which motivation theory suggests that employees are motivated by a sense of accomplishment and personal growth?
-
House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared...
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
What is a revenue ruling?
-
Describe the structure of a typical revenue ruling.
-
Where are revenue rulings initially published by the IRS? Where are the rulings permanently published in hardbound editions?
-
In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by...
-
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabrication. It started, completed, and sold...
-
The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts...
Study smarter with the SolutionInn App