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Business Threat Response Assignment
In this discussion, you are faced with a situation involving a shareholder threatening to take action that will result in a loss of S corporation status. You must determine an appropriate response.
Electing to be taxed as an S corporation can have many benefits. However, a corporation must continuously meet requirements to qualify for such status. Failure to meet these requirements, at any time, can result in the loss of S corporation status and costly consequences. Business Threat Response Assignment Help
For this discussion, first read the textbook assignment for this module. Then, referring to your knowledge of tax regulation and the ethical considerations associated with the situation, develop an appropriate strategy for responding to the situation.
Scenarios
Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation. Burt now holds 276 shares in Quaker Inn.
While listening to a television debate about a national health care plan, Burt decides that the company’s health coverage is unfair. He is concerned about this because his wife, Dora, is seriously ill. Business Threat Response Assignment Help
During the second week of December, Burt informs Quaker’s president that he would like a Christmas bonus of $75,000 cash, or else he will sell 10 shares of his stock to one of his relatives, a nonresident alien. The resulting loss of the S election would trigger about $135,000 in federal corporate income taxes for the current year alone. How should Quaker Inn’s management respond to Burt’s threat? From Burt’s point of view, do you see any unintended consequences if he follows through on his threat?
Business Threat Response Assignment Help
APA Paper Formatting Basics
- All text should be double-spaced
- Use one-inch margins on all sides
- All paragraphs in the body are indented
- Make sure that the title is centered on the page with your name and school/institution underneath
- Use 12-point font throughout
- All pages should be numbered in the upper right hand corner
- The manual recommends using one space after most punctuation marks
- A shortened version of the title (“running head”) should be placed in the upper left hand corner
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