1. Caleb and Bob are shareholders in an S corp, Apple, whose S corp status...
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Accounting
1. Caleb and Bob are shareholders in an S corp, Apple, whose S corp status was involuntarily terminated in Feb 2012. Can Apple make a new election for S corp tax status in Nov 2013? Why or why not?
2. Bobby owns and operates a junk yard, which earned $100,000 in 2012 and after paying corporate income taxes on the $100,000 distributed the remaining $72,000 as a dividend to Bobby. Assume a 28% tax rate for both individuals and corps. What are the tax consequences if Bobbys business is an S corp?
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