FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: S: Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

Which,if any,of the following can be an eligible shareholder of an S corporation?

A) A child,age 10.
B) A resident alien.
C) A voting trust.
D) The estate of a deceased shareholder.
E) All of the above can own S stock.

F) B) and D)
G) B) and C)

Correct Answer

verified

Show Answer

Question 32

True/False

Review LaterAdd Note

Review Later

An S corporation can be a shareholder in another corporation.

A) True
B) False

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Which type of distribution from an S corporation is taxed at the 0/15% Federal income tax rate?

You are a 60% owner of an S corporation.Calculate your ending stock basis,based upon these facts.

Depletion in excess of basis in property causes a(n)____________________ adjustment to an S shareholder's basis. or

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

During 2012,Oxen Corporation incurs the following transactions. Oxen maintains a valid S election and does not distribute any assets (cash or property) to its sole shareholder,Megan.As a result,Megan must recognize:

Any excess of S corporation losses or deductions over the shareholder's combined stock and debt basis is suspended until there is a subsequent stock or debt basis.

Tax-exempt income is a Schedule K item for an S corporation.

Only 80% of the shareholders must consent to an S election.

Meeting the definition of a small business corporation is a ____________________ requirement for maintaining the S status.

Consent to an S election must be in ____________________,and it must be generally filed by the election ____________________.

Compare the distribution of property rules for an S corporation with the corresponding partnership rules.

The alternative minimum tax applies to an S corporation.

Which statement is incorrect?

Individuals Adam and Bonnie form an S corporation,with Adam contributing cash of $100,000 for a 50% interest and Bonnie contributing appreciated ordinary income property with an adjusted basis of $20,000 and a fair market value of $100,000.

Shareholders may deduct losses in excess of their basis in S corporation stock when a shareholder holds a loan basis of zero.

The Section 179 expense deduction is a Schedule K item.

S corporation status allows shareholders to realize tax benefits from corporate losses ____________________.

Four unrelated individuals acquire assets on behalf of Jump Corporation on May 21,2012,purchased assets on June 5,2012,and begin doing business on June 15,2012.They subscribe to shares of stock,file articles of incorporation for Jump,and become shareholders on July 23,2012.The S election must be filed no later than 2 1/2 months after: