Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hedeon is the sole owner of cliff company. for 202

Hedeon is the sole owner of Cliff Company. For 2023, the only...

60.1K

Verified Solution

Question

Accounting

Hedeon is the sole owner of Cliff Company. For 2023, the only income of Cliff was a long-term capital gain of $25,000. The business made no distributions during the year to Hedeon. Which of the following statements is true?
a. If Cliff Company is an S corporation, Hedeon will report none of the $25,000 long-term capital gain on his personal tax return.
b. If Cliff Company is a C corporation, a preferential tax rate applies to the $25,000 long-term capital gain.
c. If Cliff Company is a C corporation, Hedeon will report the $25,000 long-term capital gain on his personal income tax return.
d. If Cliff Company is a sole proprietorship, Hedeon must report the $25,000 long-term capital gain on his personal income tax return.
e. If Cliff Company is an S corporation, the S corporation must pay tax on the $25,000 long-term capital gain at a flat rate of 21%.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Use average atomic masses to calculate the number of moles of the element present in each...

Biology
1.2K views

Compare and contrast the muscular anatomy of annelida vs nematodes. How do each of thse groups...

Physics
1.2K views

A 1700 kg car moving east at 17 m/s collides with a 1800 kg car moving...

Biology
1.2K views

Which plant phylum exhibits double fertilization Explain what two things are fertilized and what the...

Biology
1.2K views

Drag the following descriptions to the appropriate process Sunlight Photosynthesis breaks down sugar catabolism anabolism...

Physics
1.2K views

N molecules each of mass m of gas A and 2N molecules each of mass...

Basic Math
1.2K views

Suppose that 10 671 is invested at an interest rate of 6 2 per year...

Basic Math
1.2K views

Two ships leave a harbor entrance at the same time. The first ship is traveling...

Algebra
1.2K views

For the following function, what is the multiplicity of the zero -9?f(x) = x +...

Finance
1.2K views

2) UIP: The current US/Mexican exchange rates are 0.0497 - 0.0501 $/peso. Assume 2-year interest...

Finance
1.2K views

What is the DCR in Year 2?

Accounting
1.2K views

question 2 Which of the following describe the terms of convertible debt securities? I. An...