In a sole proprietorship,the equipment and profits of the business are:
A)taxed at the lowest corporate rate.
B)the property of the owner,except for taxes owed to the government.
C)taxed as income for the business,but are exempt from the personal income tax paid by the owner.
D)tax-free if the appropriate exemption is filed with the local government.

Question

Quizplus · Accepted Answer

In a sole proprietorship, the equipment and profits of the business are owned by the owner and not separate from their personal assets. Therefore, they are taxed as personal income for the owner, and any taxes owed to the government are the responsibility of the owner.

In a Sole Proprietorship,the Equipment and Profits of the Business