Steve has opened a sole proprietorship bicycle shop. The business shows a net income of $100,000. Steve took a salary of $40,000. The remaining money is left in the bank.
A) At tax time, the business pays taxes on $100,000, and Steve pays taxes on $40,000.
B) At tax time, the business pays taxes on $140,000.
C) At tax time, Steve pays taxes on $140,000.
D) At tax time, the business pays taxes on $70,000, and Steve pays taxes on $70,000.
Correct Answer:
Verified
Q46: Jonathan has graduated and wants to start
Q47: Stan and Frank have started a general
Q50: Lisa and Tara are operating a business
Q51: A partnership is considered fully terminated
A) after
Q52: Which of the following require(s) a formal
Q53: Bob, Carol, and Ted have decided to
Q54: With regard to taxation of partnerships,
A) a
Q54: Harry wants to start a personal training
Q56: A disadvantage of the sole proprietorship is
A)
Q56: Frank and Jesse are operating as a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents