2. In 2019 Harold owns 85% of Finch & Associates. Finch & Associates is a law...
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2. In 2019 Harold owns 85% of Finch & Associates. Finch & Associates is a law firm and distributes to Harold $175,000. The firm has sales income of 3.600,000 and operating expenses of $1,100,000. The firm has property with an adjusted basis of $800,000 and paid W2 wages for the year of $500,000. Harold is married and his taxable income (excluding any income from Finch & Associates) is $450,000. For each independent scenario below how the entity will be taxed and how Harold's return will be affected by the income from Finch & Associates. (8 points) a. Finch & Associates is a C-Corporation b. Finch & Associates is a Partnership C. Finch & Associates is an LLC, if you need more information please indicate what information you would need. d. How would your answer change (or not ) in part b if they were a manufacturing company instead of a law firm? 2. In 2019 Harold owns 85% of Finch & Associates. Finch & Associates is a law firm and distributes to Harold $175,000. The firm has sales income of 3.600,000 and operating expenses of $1,100,000. The firm has property with an adjusted basis of $800,000 and paid W2 wages for the year of $500,000. Harold is married and his taxable income (excluding any income from Finch & Associates) is $450,000. For each independent scenario below how the entity will be taxed and how Harold's return will be affected by the income from Finch & Associates. (8 points) a. Finch & Associates is a C-Corporation b. Finch & Associates is a Partnership C. Finch & Associates is an LLC, if you need more information please indicate what information you would need. d. How would your answer change (or not ) in part b if they were a manufacturing company instead of a law firm?
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Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
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