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WK 2 ID Assignment upload - C23 .Whatisthe...

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C2-3 Bruce and Bob organized Black LLC on May 10 of the current year.  What is the  entity's default tax classification?  Are any alternative classification (s) available?   If so, 1) how do Bruce and Bob elect the alternative classification(s) and (2) what  are the tax consequences of doing so? Since the organization Black LLC was organized by both Bruce and Bob the  default tax classification would be partnership since there would be more than  one owner involved.  Thefore, I believe that the default tax classification would be  partnership.  Yes, there are other alternative classification for the LLC  organization should the organization elect to be taxed as an corporation as well 1) Should Bruce and Bod elect the alternative classification they would do this by  first completing and filing the form 8832 ( Entity Classification Election ) with  the IRS.  The "form must be signed by each owner, or office manager and the  signature must specify the date on which the election will be effective.  The  effective date cannot be more than 75 days before or 12 months after the date the  enty files the form".  As well the form must be filed with the organizations tax  return for the electrion year. 2) The tax consequences of doing so "if a parnership election to be taxed as a  coproration  the partnership is deemed to distribute its assets to the partnerships  who ae then an eligible entity that previously elected to b taxed as a corporation  subsequently elects to be treated as a partnership".
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 C2-54   On March 1 of the current year, Alice, Bob, Carla, and Dick form Bear Corporation and transfer the following items:    Property Transferred   Transferor   Asset   Basis to Transferor  FMV   Alice   Land   12,000   30,000   Building   38,000   70,000   400   Mortgage on the land and buildin  60,000   60,000   850   Bob   Equipment   25,000   40,000   300   Carla   Van   15,000   10,000   50   Dick   Accounting services   10,000   100   Alice purchased the land and building several years ago for $12,000 and $50,000, repectively, Alice has claimed straight-line   depreciation on th4 building.  Bob also receives a  Bear note for $10,000 due in three years.  The note bears interest 
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