Describe briefly two advantages and two disadvantages of a corporate form of business organization as compared to a partnership.

5.2 Which legal structure is most difficult to establish and why?
5.4 Describe briefly two advantages and two disadvantages of a corporate form of business organization as compared to a partnership.
5.6 What is meant by the term foreign corporation?
5.8 Is it possible to characterize the legal structures of local contractors using the Yellow Pages as a guide?
5.10 In problem 5.5, what taxes would Jack pay if he organized as a closely held corporation (as described) and, after paying his salary, also issued himself a dividend of $10,000?
5.12 Uncle Fudd has decided to sell his ownership in the Cougar Construction, Inc. to Cousin Elmer. How would the legal firm handling this transaction determine a fair price per share?

Read the Chapter # 6: Impact of Taxes, Pages 91 – 104.

Answer the following questions or cases:
6.9 Pegg Construction, a partnership of three brothers, had a net income before taxes of $300,000. The brothers have agreed that all profit will be shared in equal parts. John Pegg is single, and has an income of $500,000 from other sources. How much will Mr. Pegg pay in taxes for the $100,000 from the partnership with his siblings?

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