Which of the following benefits does not occur when owner-shareholders accumulate earnings of their closely-held corporations at the entity level and later sell their stock at an increased value?
A)Deferral of shareholder tax until the year of sale.
B)Conversion of ordinary income into capital gain.
C)Increase in corporate capitalization and reduction in debt-equity ratio.
D)All of the above occur.

Question

Quizplus · Accepted Answer

All of the listed benefits occur when owner-shareholders accumulate earnings at the entity level and later sell their stock at an increased value.

Which of the Following Benefits Does Not Occur When Owner-Shareholders