1）

Imagine the United States passes a statute that prohibits anyone under the age of 18 from engaging in cryptocurrency transactions. Now imagine that Wyoming, in an attempt to attract cryptocurrency business, passes a statute stating that people of any age may engage in cryptocurrency transactions. If a 16-year-old in Wyoming wants to engage in a cryptocurrency transaction, are they legally permitted to do so?

No because the federal statute was passed before the Wyoming statute

No because the federal statute overrides the Wyoming statute

Yes because the Wyoming statute is more recent that the federal statute

Yes because the Wyoming statute overrides the federal statute

2）

Jose and Reilly are the only shareholders of Plushedelic, Inc., an LLC that has elected to be taxed like a C Corporation. Plushedelic makes $2,000,000 in profit. Jose and Reilly decide to re-invest most of the profit into growing the business, but they distribute $200,000 of the profits to themselves (they each get $100,000). Which of the following best describes Jose, Reilly, and Plushedelic's tax situations?

Plushedelic must pay corporate tax on $2,000,000; Jose and Reilly don't have to pay any personal income tax related to these profits

Plushedelic must pay corporate taxes on $2,000,000; Jose and Reilly each must pay personal income tax on $100,000

Plushedelic does not have to pay any corporate tax related to these profits; Jose and Reilly each must pay personal income tax on $100,000

Plushedelic does not have to pay any corporate tax related to these profits; Jose and Reilly each must pay personal income tax on $1,000,000

Answer rating: 100% (QA)

1 No because the federal statute overrides the Wyomi... View the full answer