FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: S Corporations

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

True/False

Review LaterAdd Note

Review Later

An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.

A) True
B) False

Correct Answer

verified

Show Answer

Question 82

Multiple Choice

Review LaterAdd Note

Review Later

Which is ineligible to be an S shareholder?

A) Individual.
B) Estate.
C) Partnership.
D) Spouse of a nonresident alien (common law state) .
E) None of the above.

F) None of the above
G) B) and E)

Correct Answer

verified

Show Answer

Question 83

True/False

Review LaterAdd Note

The Schedule M-3 is the same for a C corporation and an S corporation.

The LIFO recapture tax is a variation of the passive investment income penalty tax.

S corporation status avoids the ____________________ taxation and ____________________ limitations inherent in the regular corporate form. or

Which item does not appear on Schedule K of Form 1120S?

Bidden,Inc.,a calendar year S corporation,incurred the following items. Calculate Bidden's nonseparately computed income.

Which statement is incorrect with respect to an S shareholder's consent?

An S corporation is limited to ____________________ (how many?)shareholders.

An item that appears in the "Other Adjustments Account" affects stock basis,but not AAA,such as tax-exempt life insurance proceeds.

Passive investment income includes net capital gains from the sale of stocks and securities.

An S corporation with substantial AEP has operating revenues of $410,000,taxable interest income of $390,000,operating expenses of $260,000,and deductions attributable to the interest of $150,000.The passive income penalty tax payable,if any,is:

On January 1,2011,Zundel,Inc.,an electing S corporation,has $4,000 of AEP and a balance of $10,000 in AAA.Zundel has two shareholders,Erin and Maine,each of whom owns 500 shares of Zundel's stock.Zundel's 2011 taxable income is $5,000.Zundel distributes $6,000 to each shareholder on February 1,2011,and distributes another $3,000 to each shareholder on September 1.How is Erin taxed on this distribution?

A limited liability company can own S corporation stock.

An S corporation must own ____________________% of a subsidiary's stock in order to elect to treat the subsidiary as a QSSS.

A former spouse is treated as being in the same family as the individual to whom he or she was married.

Explain how the domestic production activities deduction is used for an S corporation.