When corporate tax rates are 13% and tax rates for individuals are 40%, is it always better

Question:

When corporate tax rates are 13% and tax rates for individuals are 40%, is it always better for the individual to transfer his or her business to a corporation?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Canadian Income Taxation 2018-2019

ISBN: 9781259464294

21st Edition

Authors: William Buckwold, Joan Kitunen

See More Books

Question Posted: Oct 02, 2019 08:45 AM

See More Questions

When corporate tax rates are 15% and tax rates for individuals are 40%, is it always better for the individual to transfer his or her business to a corporation?
Should Ferris Corporation elect to forgo the carryback of its $ 60,000 year 2014 net operating loss? Ferris is subject to a 16 percent cost of capital. Corporate tax rates are as in I. R. C. 11. a....
In each of the following scenarios should Ferris Corporation elect to forgo the carryback of its $60,000 year 2017 NOL? Ferris is subject to a 16 percent cost of capital. Corporate tax rates are as...
PROJECT SUMMARY: You have been asked to submit a proposal to a client, Sara Johnson, who is moving the small firm to a new office location. The proposal is on the analysis and design of the office...
If P(A) = .4 and P(B) = .5, what range of values is possible for P(A and B)? What range of values is possible for P(A or B)? Use a Venn diagram to help explain how each range is possible.
Swiss Ltd. issued 40,000 equity shares of 10 each at par. The entire issue was underwritten as follows: A ---- 24,000 shares (firm underwriting 3,200 shares); B ---- 10,000 shares (firm underwriting...
Design Data sold a piece of machinery to HHB Drafting Company. However, after HHB had taken possession of the machine, it discovered damage and revoked the contract. The court found that the...
Gregory and Lulu Clifdens Tax Return Gregory R. and Lulu B. Clifden live with their family at the Rock Glen House Bed & Breakfast, which Gregory operates. The Bed & Breakfast (B&B) is located at...
The scope of a project is expanded through the formal change control process, causing the schedule to be extended beyond the original due date. This is an example of which type of influence?
Explain the challenges faced by managerial accountants in effectively communicating managerial accounting information to various interested users.
Find the terms and conditions of a recent bond issue and compare them with those of the AMAT issue.
A taxpayers tax liability was $1,200 for 20X1, $12,000 for 20X2, and is expected to be $36,000 for 20X3. Is the taxpayer required to make tax instalments for 20X3 and if so, what are the amounts and...
Suppose that X1, . . . , Xn form a random sample from the normal distribution with unknown mean and unknown variance 2. Describe a method for constructing aconfidence interval for 2 with a specified...
Give three examples of adult bias. How can an adult increase the objectivity of observations? What are anecdotal records? What is a running account? What are time sampling and event sampling? What...
Last year Ranjani moved to Canada from India. At the time she owned a house in India and a Condo in Canada. She bought each for $300,000 Canadian dollars. At the time of the move, each property was...
Tim purchased three items at a general discount store: a surge protector for $9.97, a pack of batteries for $10.97, and a bag of apples for $5.99. The general sales tax rate is 7%, but the sales tax...
A taxpayer who is required to take an RMD of $10,000 in TY2023 fails to do so during the year. What is the base level excess accumulation penalty that this taxpayer will owe before any potential...
A tax return filed in TY2023 as married filing jointly has alternative minimum taxable income (AMTI) of $295,000. What is the amount of AMT that they will have to pay or have to have withholdings to...
a. Find the value of the population variance 2. b. Table 6-2 describes the sampling distribution of the sample mean. Construct a similar table representing the sampling distribution of the sample...
Use the method of Example 4.29 to compute the indicated power of the matrix. 1 0 1
What is a buy-back of corporate shares?
George Kings date of death is October 24, 2022. In his final tax return for 2022, taxable capital gains of $200,000 on his stock portfolio were reported. In 2023, the value of his stock portfolio...
A Canadian corporation with a December year-end incurs the following losses: Determine the expiry date for each of the above losses. Non-capital loss Non-capital loss Net capital loss Amount $10,000...
Jenny wishes to accumulate $10000 over 5 years for an overseas trip. She will make a deposit every 6-months, and the funds will earn the interest rate of 4% per annum compounded semi-annually. How...
Write a short C++ program that will prompt the user and input three integer values (month, day, year) from the console in a "date" format that includes '/' separator characters. e.g., 8/21/2013. Your...
Aimee is the owner of a stock with annual returns of 12.3 percent, -5.0 percent, 6.6 percent, and 18.2 percent for the past four years. She thinks the stock may achieve a return of 27 percent this...

When corporate tax rates are 13% and tax rates for individuals are 40%, is it always better

Question:

Step by Step Answer:

There is not always an advantage to transfer income to ...View the full answer

Canadian Income Taxation 2018-2019

Students also viewed these Business questions