Corporations: Operational Phase Class

Corporations: Operational Phase Class

Options available

The expected profit of Plummet is $300,000 for the third year of business operations, and as they want to reward themselves financially from their successful business, following are some of the alternative options available for the distributions of cash available to jack and Jill

Dividends payments

The simplest option available for jack and Jill to withdraw cash from The Plummet Company is to share out cash as a dividend payments. Although there are severe tax consequences associated with the theses options which are described below, but still this options remains most used options.

Tax ...