[Nail Salon] Thea and her friends Josef and Danny, all U.S….
[Nail Salon] Thea and her friends Josef and Danny, all U.S. citizens, want to open a nail salon. They would all like to avoid personal liability for debts of the business and/or wrongful acts of each other. They would also like to minimize taxation. Thea is in favor of a corporation and asks if there is any problem with that form of business. Josef and Danny say that they are concerned about double taxation with a corporation and that they are in favor of a partnership, even if personal liability is a concern. Thea said that she was concerned about the deductibility of losses if the corporate form was chosen. She did some research and suggested an S corporation to Josef and Danny which she claimed would avoid the problem of double taxation. In regard to losses, what type of tax treatment would an S corporation provide?
Read DetailsQ22: Alexa has an amazing sangria recipe that calls for red…
Q22: Alexa has an amazing sangria recipe that calls for red wine, orange juice, and various diced fruits. Her mixture includes 7 parts red wine to 2 parts orange juice. If she uses 21 parts of red wine, how much orange juice should she use? [a] If she uses 9 parts of orange juice, how much red wine should she use? [b] If she wants to make 12 cups of sangria, she should use [c] cups of red wine and [d] cups of orange juice. Write your answer a mixed number (For example, 4 1/2 or 6 2/3).
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