Are Form 1120 Schedule M 3 Completing 2019-2024

Hello and welcome to chapter 17. This is Professor Farhad. In this session, we're going to introduce chapter 17 and specifically, we're going to look at the various business forms and the tax treatments of the various business forms. So, if you have your textbook, by all means, you know, you could read the textbook beforehand or after the lecture, but make sure you read the textbook because I'm going to go over the various tax business forms that they have different tax treatment, such as a sole proprietorship, a partnership, trust, S corporation. What I never get across today, I would look at trusts later on during this semester, as well as S and C corporations and limited liability companies. So, they were going to be focusing on the tax treatment of various business transactions to tell us straight this concept. But we're going to do, we're going to start by looking at the big picture. We're going to use cement as an example and look at Samantha's from deep various perspectives. So we have Samantha here. Samantha Johnson owns a bakery and currently, the bakery is operated as a sole proprietorship, means she operated, she's the sole owner of the business, and she's not incorporated. Samantha generates an annual operating profit of a hundred thousand, so she makes $100,000 in profit. In addition, the bakery earns an annual dividend of five thousand dollars. So she has some extra money invested, some extra working capital, and this money is bringing the business $5,000 in the form of dividend income. These stock investments typically a minimum of three to four months. Okay, that's fine. As a result of income from other business ventures and investments, Samantha is in the thirty-three percent marginal tax bracket. So her marginal tax bracket is 33 percent,...