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12. What are the three characteristics of a sole proprietorship? Are these characteristics the same as or different from those of a partnership? What are three characteristics of a limited liability company that differ from those of a partnership?
<pclass=”msonormal” style=”margin: 0cm 0cm 0.0001pt -4.5pt; text-indent: -17.1pt;”>119. The Warner Corporation has gross income of $560,000. It has business expense of $325,000, a capital loss of $20,000, and $2,500 of interest income on temporary investments. What is the corporation’s taxable income?
30.Hunter Corporation has $250,000 in gross income, $125,000 in deductible business expenses, and a $12,000 business tax credit. Determine the corporation’s net tax liability
36. June and John decide to form a business. They each plan to contribute $20,000 in exchange for a 50 percent interest in the business. They will then take out a bank loan for $30,000 to cover the balance of their working capital needs. They expect that the business will make a profit of
$64,000 in the first year and that it will not make any cash distributions that year. Excluding the business income, June, who files as head of household, has $450,000 of other taxable income. John is married and files a joint return; he and his wife have $100,000 of other taxable income. They want to know how much tax the business will pay and how much additional tax they will personally pay in 2012 if they form the business as a partnership, S corporation, or C corporation. Consider only income taxes
40. Carl is a 30 percent partner in the CCF Partnership. At the beginning of the year, his basis in the partnership is $4,000. The partnership reports $7,000 of ordinary income and distributes $3,000 to the partners. What is Carl’s basis at the end of the year?
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