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2.It is 2017 and Alison has the following investments. She owns20% of Global &...

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Accounting

2.It is 2017 and Alison has the following investments. She owns20% of Global & Associates. Global pays Alison $70,000distribution (dividend) and has sales income of $500,000 andoperating expenses of $100,000. How will Alison’s personal taxreturn be affected if?

a. Global is a C-Corporation

b. Global is a Partnership

c. Global is a S-Corporation

d. Global is an LLC. If you need more information pleaseindicate what information you would need.

e. How would your answer change to part c if this were 2018instead?

Answer & Explanation Solved by verified expert
4.0 Ratings (676 Votes)
A Global is a CCorporation There is double taxation of dividend CCorps pay taxes at the corporate level first After that individual shareholders pay taxes on dividends paid by the corporation CCorp reduces business taxable income by deducting operating expenses from revenue 500000100000 400000 and thus the taxable income is 400000 Secondly Aldison will be taxed only    See Answer
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Transcribed Image Text

In: Accounting2.It is 2017 and Alison has the following investments. She owns20% of Global & Associates....2.It is 2017 and Alison has the following investments. She owns20% of Global & Associates. Global pays Alison $70,000distribution (dividend) and has sales income of $500,000 andoperating expenses of $100,000. How will Alison’s personal taxreturn be affected if?a. Global is a C-Corporationb. Global is a Partnershipc. Global is a S-Corporationd. Global is an LLC. If you need more information pleaseindicate what information you would need.e. How would your answer change to part c if this were 2018instead?

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