AC553 - Week 5 - Yazan Al Herbawi AC553 Assignment Week 5...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Yazan Al Herbawi AC553 Assignment – Week 5 Chapter 14 Question 4: Code Sec. 351 allows investors to avoid recognizing gains on transfers of assets to a corporation in return of property. The purpose is to avoid discouraging investors from contributing to corporations. Corporations are considered significant stimulants of the economy. Question 20: Corporations may elect a calendar year, or a fiscal year, regardless of the tax years of its owners. Partnerships need to have the same tax year as the principal partners. S corporations are required to adopt the calendar year for tax purposes. The difference as illustrated is that corporations have more flexibility is choosing their tax year. Both, personal service corporations and S corporations may elect a fiscal year if they can establish a business purpose for it. Question 22: Corporations are allowed to net long-term capital gains/losses against short-term gains and losses to arrive at a net gain/loss. If both long-term and short-term balances
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/15/2010 for the course AC 553 taught by Professor ?? during the Spring '08 term at Keller Graduate School of Management.

Page1 / 2

AC553 - Week 5 - Yazan Al Herbawi AC553 Assignment Week 5...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online