ACCT-465 Exam 1 - Reference Study Guide Section 1 - Conceptual MC Questions (60 points): 1. Ref: Page C2-4 2.

Ref: Page C2-4; Example 2-3 3. Ref: Page C2-5 4. Ref: Page C2-6 5. Ref: Page C2-6 & C2-7 6. Ref: Page C2-6 7. Ref: Page C2-8 8. Ref: Page C2-8 & C:2-9 9. Ref: Page C2-12 10.Page Ref: C2-13; Example 2-12 11.Page Ref: C:2-15; Example 2-19 12.Page Ref: C:2-16; Example 2-22 13.Page Ref: C:2-17 14.Page ref: C:3-2 15.Page ref: C3-3 16.Page ref: C:3-44 17.Page ref: C:3-44 18.Page ref: C:3-44 19.Page ref: C:3-5 20.Page ref: C:3-6 & C:3-7 21.Page ref: C:3-7; Example 3-2 22.Page ref: C:3-7; Example 3-3 23.Page ref: C:3-9

24.Page ref: C:3-8 & C3-9; example C3-5 25.Page ref: C:3-10 26.Page ref: C:3-11 27.Page ref: C:3-12 28.Page ref: C:3-13 29.Page ref: C:3-14 30.Page ref: C:3-17

Section 2 Computational Problems (40 points): 1. Page Ref: C: 2-18; Example 2-25 2. Page Ref: C:2-19; Example 2-26 3. Page ref: C:3-7; Example 3-4 4. Page Ref: C:3-11 & 3-12; Example 3-9 5. Page Ref: C:3-15; Example 3-15 6. Page Ref C:3-16 & 17 7. Page Ref: C:3-18 8. Page Ref: C:3-23

LLC limited liability, unlimited number of members, partnership by default, members may be individuals, corporations, trusts & estates..if a partnership, it files 1065 tax return LLP partnership, CPA firms, limited liability, members are personally liable for acts and omissions and those acts and omissions incurred by individuals under their control. Other members are not personally liable for acts and omissions of other members. Check the box regulations

an unincorporated business with 2 or more owners can be taxed as a partnership by default, an unincorporated business with 1 owner is not a separate business and is treated as a sole proprietorship for tax purposes form 8832 form filed to the SEC to elect classification, i.e. whether to be taxed as a partnership or as a corporation, signed by all members, must specify when the election becomes effective, effective date cannot be more than 75 days before or 12 months after form 8832 is filed. Legal requirements and tax considerations when forming a corporation 1. investing a minimum amount of capital 2. file articles of incorporation 3. issue stock 4. pay incorporation fees tax considerations for corporations owner must transfer assets to the corporation in exchange for its debt or equity Deferring gains or losses upon incorporation section 351 (a): transferors recognize no gain or loss when they transfer property to a corporation solely in exchange for stock providing that immediately after the exchange, the transferors are in control of the corporation... 2 approaches for deferring gain/losses 1. when property is transferred to the corporation, no gains/losses are recognized 2. The FMV of equity received when transferring property deferred gain = equity basis