If the shareholder of a Subchapter S corporation has a negative balance, how should this be shown

Question:

If the shareholder of a Subchapter S corporation has a negative balance, how should this be shown on the net worth schedule?

a. The negative basis should be shown

b. Only positive balances should be shown

c. Basis cannot go below zero.

d. Shareholder can't have a negative basis

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

Step by Step Answer:

Related Book For answer-question

Financial Investigation And Forensic Accounting

ISBN: 9780367864347

3rd Edition

Authors: George A Manning

See More Books

Question Posted: Jan 27, 2024 10:08 PM

See More Questions

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
Carol Harris, Ph.D, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
Multiple choice questions 1. Which, if any, of the following statements concerning the shareholders of a Subchapter C corporation is correct? a. Shareholders are taxed on their proportionate share of...
In Exercises 6780, begin by graphing the square root function, f(x) = x. Then use transformations of this graph to graph the given function. h(x)=x + 2-2
Draw the shear and moment diagrams for the shaft. The support at A is a journal bearing and at B it is a thrust bearing. Given: F1 = 400 lb F2 = 800 lb w = 100lb/in a = 4 in b = 12 in c = 4 in F2 .
Simplify the complex fraction. 3 p? 16 - 4
Using an incremental internal rate of return (IRR) analysis, the decision to replace the "current best" by the "challenger"' is based on what decision rule? a. The internal rate of return of the...
Using the planned orders generated in Problem 17, complete inventory records for components AB501, AB511, and AB521. Use the lot size rule, lead time, and usage information given in Problem 12.
Centralized versus Decentralized Database Management Systems"Please respond to the following: Compare and contrast benefits and challenges that exist between centralized database management systems...
How should a partner show his negative investment in a partnership? a. The negative basis should not be shown b. The negative should be shown c. Partner's negative basis plus pro-rata share of...
For tax net worth purposes, Subchapter S corporations should show: a. Net cash investment b. Net cash investment plus profits c. Net cash investment plus current profits or losses d. Net cash...
(a) Write an equation to represent the discharge of an alkaline electrolyte cell containing a Zn anode and BaFeO 4 cathode. (b) The first charge transfer band for [MnO 4 ] occurs at 18320cm 1 , and...
Determine the stresses at points A and B as a results of applying each of the following internal loads N = 300 N, V = 250 N, M = 120 N.m and T = 300 N/m. The diameter is 20 mm. You must show your...
Using Exponential form. The phase shift between two systems has been expressed as: 2 <120 + 5.2 <58 -1.6 < -40. The correction to this phase shift is expressed as (-1-5j).
Calculate the moment of inertia of the shape about the indicated axis In the horizontal direction, assume the centroid is located in the midide of shape 1.00 6.00 3.50 3.50 3.00 Z 1.00 1 (2) 2.00 (3)...
1. The parabolic function in the figure represents the profile of the water flow velocity between two plates placed 0.01 m apart. In the velocity formula, y is expressed in meters. Calculate the...
2. The transducer specified in Table 1.1 (below) is chosen to measure a nominal pressure of 700 cm HO. The ambient temperature is expected to vary between 20C and 25C during tests. Determine each...
The Pacific Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a...
Southwestern Punch was made by Frutayuda, Inc. and sold in 12-ounce cans to benefit victims of Hurricane Zero. The mean number of ounces placed in a can by an automatic fill pump is 11.7 with a...
How has e-commerce affected business-to-business transactions? List and describe important types of m-commerce services and applications.
What is the role of knowledge management systems in business? a. Define knowledge management and explain its value to businesses. b. Describe the important dimensions of knowledge. c. Distinguish...
What types of systems are used for enterprise-wide knowledge management, and how do they provide value for businesses? a. Define and describe the various types of enterprise-wide knowledge management...
3. Which type of deed provides the grantee with the HIGHEST level of protection?
1.Research values-based and ethical leadership... discusses some guidelines for ethical leadership. 2. Discuss the importance of values and ethics for the pathway in business Management.
"You are the customer support manager for a small software manufacturer. These newest addition to your 1 0 - person team is Sofia, a recent college graduate. She is a little overwhelmed by the volume...

If the shareholder of a Subchapter S corporation has a negative balance, how should this be shown

Question:

Step by Step Answer:

Financial Investigation And Forensic Accounting

Students also viewed these Business questions