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Business, 08.04.2020 03:29, jacquicmoreland2106
Currently, Nick's brother Tommy owns an auto repair shop across town. Tommy owns the shop as a sole proprietorship. Nick has suggested that Tommy think about converting the shop to a corporation. Advantages for incorporating the repair shop into a C corporation include which of the following?
I. Allowing the flow-through of corporate profits to shareholders that could be taxed at each owner's marginal tax bracket.
II. Withdrawing accumulated profits at capital gain rates.
III. Providing tax-favored fringe benefits to employee shareholders.
IV. Changing the form of business with ease once a corporation has been formed.
A. II only
B. III only
C. I and III only
D. I and IV only
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Currently, Nick's brother Tommy owns an auto repair shop across town. Tommy owns the shop as a sole...
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