Stratege4u Corp has $250,000 in taxable income. Bernie & Bev are 50% partners in Stratege4u Partnership. The partnership net profit is $250,000.

Instructions: 

Prepare a 1 to 3 page written essay to address the following salient points below:

1. Compare and contrast the advantages and disadvantages between a C-corporation and a general partnership.
2. If you were the tax accountant for Stratege4u Corp, what amount of liability (taxes), if any, you would inform Stratege4u Corp that it owes to the IRS for tax year 2020 based on the above scenario?
3. If you were the tax accountant for Stratege4u Partnership, what amount of liability (taxes), if any, you would inform Stratege4u Partnership that it owes to the IRS for tax year 2020 based on the above scenario?
4. If you were the tax accountant for Bernie, how much income (dollar amount), if any, you would inform Bernie that she has to report on her (1040) tax return for tax year 2020 based on the above scenario?

Answer rating: 100% (QA)

A corporation is a legal entity that is separate from its owners A corporation can act independently and make a profit be taxed and be held legally li... View the full answer