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Unformatted text preview: 30 Income Summary 1400 Retained Earnings 1400 To close Income Summary 30 Retained Earnings 1000 Dividends 1000 To close dividends account declared during the year Income Tax Payable C. The net incomes between sole proprietorship is higher than that when S & X Co is a corporation because taxes are taken o operations, and also Paul Turners salary is an expense when it’s a corporation, versus just a withdrawal as a sole proprietorsh i p D. 1) Paul Turner's tax return would include the business with his individual tax return and profit/loss would show on his return . 2) Paul Turners tax return would only show the amount of dividends received from the corporation on his tax return....
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This note was uploaded on 12/18/2010 for the course BUS 254788 taught by Professor Mitchell during the Spring '10 term at SUNY Albany.
- Spring '10