Have recent tax law changes increased or decreased the double tax on C corporation income? Explain.
Have recent tax law changes increased or decreased the double tax on C corporation income? Explain.
Homework Answers
C corporations are known for having "Double Taxation." which means that C Corporation is taxed at the corporate level on the corporation's net income and afterwards again taxed to the shareholders when the profits are distributed among them. The new law has dropped the rate of income tax on regular corporations (also referred as C corporations) from 35% to a flat 21%. The Bonus Depreciation deduction is increased to 100%, thus allowing the firms to write off the entire cost of qualifying assets that they place in service or buy after Sept. 27, 2017. The depreciation caps for passenger autos annually have also increased. The companies before the year 2018 could take a tax write-off for half of their business-related entertainment expenditure but the new law has eliminated this break. The exclusion amount for estate tax has been set to $5 million
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Have recent tax law changes increased or decreased the double
tax on C corporation income? Explain.
True/False 1)Two notable trends in tax revenue sources is that social security taxes have decreased gradually...
True/False 1)Two notable trends in tax revenue sources is that social security taxes have decreased gradually while corporate income taxes have increased gradually over the last fifty years. 2. If a progressive tax rate system is used, as a taxpayer's taxable income decreases, a progressively higher rate of tax is applied. 3. The marginal tax rate measures the tax rate applicable to the next dollar of income or deduction for a taxpayer. 4. Using retroactive dates for changes in the...
a. Explain the principal difference in the tax treatment of an S corporation and a C...
a. Explain the principal difference in the tax treatment of an S corporation and a C corporation. b. Why would a C corporation be used if an S corporation is generally exempt from tax? a. Explain the principal difterence in the tax treatment of an S corporation and a C corporation A C Corporation is reports his or her share of the income and for tax purposes is considered An S Corporation is Its income Each shareholder distributed
In 2016 Joe earnings increased by $4,000 from the year before. There were no other changes...
In 2016 Joe earnings increased by $4,000 from the year before. There were no other changes in his income, family (tax filing) status, or deductions. There were no changes in the federal income tax code either. As a result of this increase in earnings (and taxable income) Joe’s federal income taxes increased by $1,000. What is the marginal tax rate Joe faces? __________. Explain.
1. Retrospective restatement of financial statements can result from: a. Changes in tax law. b. Errors...
1. Retrospective restatement of financial statements can result from: a. Changes in tax law. b. Errors in the current income statements. c. Changes in accounting policies. d. Changes in estimates. e. Contributed capital.
4. A particular reaction is found to have the following rate law: Rate = k[A] [B]...
4. A particular reaction is found to have the following rate law: Rate = k[A] [B] Which terms in this rate law are made different by each of the following changes? a. The concentration of A is doubled. Kate becomes a times the previous rate b. A catalyst is added. C. The concentration of A is increased by a factor of 2 and the concentration of Bis decreased by a factor of 4. d. The temperature is increased.
The income statement of Bridgeport Corporation is presented here. BRIDGEPORT CORPORATION Income Statement Year Ended November...
The income statement of Bridgeport Corporation is presented here. BRIDGEPORT CORPORATION Income Statement Year Ended November 30, 2018 Sales $8,100,000 Cost of goods sold 4,950,000 Gross profit 3,150,000 Salaries expense 863,000 Operating expenses 222,000 Depreciation expense 90,000 Income before income tax 1,975,000 Income tax expense 245.000 Net income $1,730,000 Additional information: 1. Accounts receivable increased $400,000 during the year, and inventory decreased $540,000. 2. Prepaid expenses, which relate to administrative expenses, increased $200,000 during the year. 3. Accounts payable to...
Explain changes in the U.S. economy that have made Public Law 86-272 partially obsolete. Provide an...
Explain changes in the U.S. economy that have made Public Law 86-272 partially obsolete. Provide an example of a company for which Public Law 86-272 works well and one for which it does not.
The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION Statement of Income Year Ended...
The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION Statement of Income Year Ended December 31, 2020 Sales revenue $8,364,000 Cost of goods sold 5,100,000 Gross profit 3,264,000 Operating expenses $1,703,400 Depreciation expense 81,600 1,785,000 Profit before income tax $1,479,000 Income tax expense 517,650 Net income $961,350 Additional information: 1. Accounts receivable decreased $306,000 during the year. 2. Prepaid expenses increased $204,000 during the year. 3. Inventory decreased $408,000 during the year. 4. Accounts payable decreased $459,000 during...
Explain how a corporation reporting a taxable loss can be an income tax benefit
Explain how a corporation reporting a taxable loss can be an income tax benefit
A debit to the Payroll Tax Expense account means: A.The employer’s payroll taxes have increased B.The...
A debit to the Payroll Tax Expense account means: A.The employer’s payroll taxes have increased B.The employer’s payroll taxes have decreased C.Both the employer’s and the employee’s payroll taxes have increased D.The employer’s and employee’s payroll taxes have not changed
a. Explain the principal difference in the tax treatment of an S corporation and a C corporation. b. Why would a C corporation be used if an S corporation is generally exempt from tax? a. Explain the principal difterence in the tax treatment of an S corporation and a C corporation A C Corporation is reports his or her share of the income and for tax purposes is considered An S Corporation is Its income Each shareholder distributed
4. A particular reaction is found to have the following rate law: Rate = k[A] [B] Which terms in this rate law are made different by each of the following changes? a. The concentration of A is doubled. Kate becomes a times the previous rate b. A catalyst is added. C. The concentration of A is increased by a factor of 2 and the concentration of Bis decreased by a factor of 4. d. The temperature is increased.
The income statement of Bridgeport Corporation is presented here. BRIDGEPORT CORPORATION Income Statement Year Ended November 30, 2018 Sales $8,100,000 Cost of goods sold 4,950,000 Gross profit 3,150,000 Salaries expense 863,000 Operating expenses 222,000 Depreciation expense 90,000 Income before income tax 1,975,000 Income tax expense 245.000 Net income $1,730,000 Additional information: 1. Accounts receivable increased $400,000 during the year, and inventory decreased $540,000. 2. Prepaid expenses, which relate to administrative expenses, increased $200,000 during the year. 3. Accounts payable to...
The income statement of Tamache Corporation is shown below: TAMACHE CORPORATION Statement of Income Year Ended December 31, 2020 Sales revenue $8,364,000 Cost of goods sold 5,100,000 Gross profit 3,264,000 Operating expenses $1,703,400 Depreciation expense 81,600 1,785,000 Profit before income tax $1,479,000 Income tax expense 517,650 Net income $961,350 Additional information: 1. Accounts receivable decreased $306,000 during the year. 2. Prepaid expenses increased $204,000 during the year. 3. Inventory decreased $408,000 during the year. 4. Accounts payable decreased $459,000 during...
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