Module 2 Assignment Click on the links below to read more about corporations and the advantages and disadvantages of corporations

Module 2 Assignment Click on the links below to read more about corporations and the advantages and disadvantages of corporations. The answers to the short-answer questions that make up your Module 2 Assignment will be found by reading the information contained in these two links. You may want to look ahead to see what the questions are prior to reading the information from the links.

https://smallbusiness.chron.com/advantages-disadvantages-ccorp-scorp-21120.html Answer the following questions after reading the above links.  Name one of the three requirements to be classified as a personal service corporation.

 Why would a taxpayer choose a C Corporation as opposed to an S corporation?

To receive tax-free recognition upon formation of a C Corporation, generally, what percentage of stock must the transferor(s) own immediately after the exchange?

  Why would a taxpayer choose an S Corporation rather than a C Corporation?

 How do you determine the basis of stock you receive in a C Corporation?

 What tax form does a C Corporation file with the IRS to report its income, gains, losses, deductions, and credits?

 What penalties does the IRS impose if a C Corporation files their tax return after the due date?

 What are the permissible accounting methods allowed by the IRS for C Corporations?