Sandi and Walter want to go into business together and plan on offering a tutoring service to high school and college students. They plan on hiring 5 employees for the business. Sandy proposes that they form a corporation for this purpose in order to reduce their personal liability against lawsuits filed related to the business. However, Walter is concerned about being able to pay their debts because they will have to rent tutoring space, purchase computers and supplies, and pay the employees. He wonders if they will have to pay more taxes if they form a corporation on top of all these expenses. Sandi says forming a corporation would likely result in double taxation. Is Sandi correct that forming a corporation would likely result in double taxation?

Is Sandi correct that forming a corporation would likely result in double taxation?

a)

Yes, Sandi is correct because the corporation would be required to pay tax on its profits, and the owners/shareholders would also be required to pay income taxes on dividends.
b)

No, Sandi is incorrect because all businesses are taxed in the same manner.
c)

No, Sandi is incorrect but only because the law involving taxation of corporations does not apply until there are at least 10 shareholders or 10 employees.
d)

Yes, Sandi is correct but only because Walter’s proposal does not involve a writing and the filing of paperwork with the secretary of their state.

Refers to the way we conduct ourselves

You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. recently, you saw that stubhub was listing similar seats for $225 apiece. what does it cost you to attend the concert?

Selected t-account balances for bloomfield company are shown below as of january 31, which reflect its accounting adjustments. the firm uses a calendar-year accounting period, but prepares monthly accounting adjustments.suppliesjan. 31 bal. 1,800 1,800 jan. 31 bal.supplies expensejan. 31 bal. 1,920 1,148 jan. 31 bal.prepaid insurancejan. 31 bal. 1,148 1,148 jan. 31 bal.insurance expensejan. 31 bal. 164 164 jan. 31 bal.wages payablejan. 31 bal. 1,400 1,400 jan. 31 bal.wages expensejan. 31 bal. 6,400 6,400 jan. 31 bal.truckjan. 31 bal. 17,376 17,376 jan. 31 bal.accumulated depreciation -truckjan. 31 bal. 5,068 5,068 jan. 31 bal.a. if the amount in supplies expense represents the january 31 adjustment for the supplies used in january, and $1,240 worth of supplies were purchased during january, what was the january 1 beginning balance of supplies? $answerb. the amount in the insurance expense account represents the adjustment made at january 31 for january insurance expense. if the original insurance premium was for one year, what was the amount of the premium, and on what date did the insurance policy start? amount of the premium $answerthe policy began on answerjune 1july 1august 1september 1october 1november 1 of the previous year.c. if we assume that no beginning balance existed in either in either wage payable or wage expense on january 1, how much cash was paid as wages during january? $answerd. if the truck has a useful life of four years (or 48 months), what is the monthly amount of depreciation expense, and how many months has bloomfield owned the truck? answermonths