Multiple Choice
Which of the following is not an effective strategy for mitigating the double tax associated with C corporations?
A) Paying a salary to a shareholder-employee.
B) Leasing property from a shareholder.
C) Borrowing money from a shareholder.
D) Paying fringe benefits to a shareholder-employee.
E) All of the choices are effective strategies for mitigating double taxation.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Explanation: Owners of unincorporated entities can be
Q20: Sole proprietors are subject to self-employment taxes
Q31: Emmy would like to organize PRK as
Q32: Jaron would like to organize TMZ as
Q35: Becca would like to organize BMI as
Q39: C corporations and S corporations are separate
Q42: Robert is seeking additional capital to expand
Q67: What tax year-end must an unincorporated entity
Q68: Losses from C corporations are never available
Q77: What document must LLCs file with the