Exercise 12-2 a, b and c. Also, exercise 12-3 please
12.2
(a) Sharif, Henry and Korb should opt for S Corporation because in S corporation, they will enjoy both the benefits i,e. limited liability and avoidance of paying corporate income taxes because in S corporation, profits/losses of the business are reported on owner's personal tax returns.
(b) Jackie and Susie should opt for Limited Liability Partnership because in general partnership, both the partners will be financially responsible for any suit against the partnership.
(c) Rob and Bran should opt for an LLC because in LLC, they will enjoy the perk of limited liability of partners and moreover LLC can elect to be taxed as partnership firm and avoid paying the corporate taxes.
12.3
Journal Entry for Moss's Investment
Dr. Cash $17,500
Dr. Equipment $82,500
Cr. Moss Capital $75,000
Cr. Notes Payable $25,000
Journal Entry for Barber's Investment
Dr. Cash $31,250
Cr. Barber Capital $31,250
Exercise 12-2 a, b and c. Also, exercise 12-3 please Exercise 12-2 Forms of organization C1...