Why is the tax cost of incorporating an existing business generally low, while the tax cost of
Question:
Why is the tax cost of incorporating an existing business generally low, while the tax cost of liquidating a business conducted in corporate form generally high?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
The tax cost differences between incorporating an existing business and liquidating a business conducted in corporate form stem from the distinct tax ...View the full answer
Answered By
Rishabh Ojha
During my undergraduate i used to participate as TA (Teaching Assistant) in several electronics and computers subject. I'm passionate about learning Computer Science as my bachelors are in Electronics but i learnt most of the Computer Science subjects on my own which Machine Learning also. At Present, i'm a working professional pursuing my career as a Machine Learning Engineer and i want to help others learn during my free hours, that's all the motivation behind giving tuition. To be frank i have no prior experience of tutoring but i have solved problems on opensource platforms like StackOverflow and github. ~Thanks
4.90+
3+ Reviews
10+ Question Solved
Related Book For
CCH Federal Taxation 2019 Comprehensive Topics
ISBN: 9780808049081
2019 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
Question Posted:
Students also viewed these Business questions
-
Why is the tax cost of incorporating an existing business generally low, while the tax cost of liquidating a business conducted in corporate form generally high?
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Why is an increase in price more likely to decrease the total revenue of a seller in the long run than in the short run?
-
Researchers at Harris Interactive wondered if there was a difference between males and females in regard to some common annoyances. They asked a random sample of males and females, the following...
-
Which of the following assumptions is not required for Miller and Modiglianis (MM) dividend theory? A. There are no taxes. B. Investors sort themselves into dividend clienteles. C. Shareholders have...
-
Stability analysis with heat transfer. Set up the equations for steady state for the Bnard problem. Now perturb the temperature and use an energy equation to derive an equation for the temperature...
-
When we represent directions in the x - y plane, we usually represent North and South by the positive and negative y directions respectively, and East and West by the positive and negative x...
-
Explain the steps involved in the financial planning process for an individual to secure all important goals of life ?
-
Baretta Corp. owns 100 percent of the stock of PPK Corp., and also owns PPK Corp. debentures with a face amount (and basis) of \(\$ 200,000\). A plan of liquidation is adopted and PPK is liquidated...
-
Describe the residual method for allocating basis to assets following a Code Sec. 338 election.
-
Octopus Travel studied the types of work-related activity that Australians do while on holiday. Among other things, 20% take their work with them on holiday. Fifteen per cent negotiate new deals or...
-
A single fair die is rolled. Let the event \(A\) be the face showing is even. Let the event \(B\) be the face showing is divisible by 3 . (a) List out the sample space of the experiment. (b) List the...
-
Let \(X\) be a random variable having probability density function \[ f(x)=2 x \text { for } \quad 0 \quad x \quad 1 \] (a) Find \(P\left(\begin{array}{ll}X \quad 75\end{array} ight)\). (b) Find...
-
Let \(X\) have the uniform distribution. (a) Find \(\mathrm{E}[X]\). (b) Find \(\operatorname{Var}[X]\). (c) Find \(P\left(\begin{array}{ll}X \quad 25\end{array} ight)\). (d) Find \(P(33
-
Let \(X\) have a \(\operatorname{beta}(12\) 4) distribution. (a) Find \(\mathrm{E}[X]\). (b) Find \(\operatorname{Var}[X]\).
-
In order to determine how e ective a magazine is at reaching its target audience, a market research company selects a random sample of people from the target audience and interviews them. Out of the...
-
For a temperature of 300 K, use the equation in Problem 49 to find the bias voltage Vb for which the exponential term has the value (a) 10 and (b) 0.1.
-
Interview managers at three companies in your area about their use of ERP. How have their experiences been similar? What accounts for the similarities and differences?
-
Arnold Atkins purchased a residence for $160,000 on September 26, 2017. In October 2018, he became ill and was confined to a nursing home. On October 8, 2019, he sold the residence for $245,000. How...
-
Thomas and Tonya Taylor purchased a home for $125,000 on September 15, 2017. On October 8, 2018, they were divorced, and as part oft he divorce agreement, the home was transferred to Thomas, who sold...
-
Tina and Tom Talley purchased a home in 2004 for $450,000. Over the years, they made substantial improvements, totaling $100,000. In 2018, the couple was divorced. As part of the settlement, the...
-
The following cash flows result from a potential engineering project for GoldBrick Engineering: 1. Receiving $250,000 at the start of the project and $600,000 at the end of the fourth year 2....
-
Use induction to prove that: T(n): t(n-1)+n n=1 n>1 Equal to t(n) =n (n+1), for all n >= 1.
-
a. (5 marks) Analyse the following algorithms to find the worst case? Algorithm1 (A, B,) 1. for i <1 to n do 2. 3. 4. 5. for j1 to n do C [i, j] 0.0 for k 1 ton do 6. return C C [i, j] C [i, j] + A...
Study smarter with the SolutionInn App