Solved by verified expert :1237. CHAPTER
12—S CORPORATIONS Question TF #1
The alternative minimum tax may apply to an S corporation.
a.
True
b. False
1238. CHAPTER
12—S CORPORATIONS Question TF #2
The alternative minimum tax does not
apply to an S corporation.
a.
True
b. False
1239. CHAPTER
12—S CORPORATIONS Question TF #3
Liabilities affect owners’ basis differently between a partnership and an S
corporation.
a.
True
b. False
1240. CHAPTER
12—S CORPORATIONS Question TF #4
An S election allows shareholders to realize tax benefits from losses
immediately.
a.
True
b. False
1241. CHAPTER
12—S CORPORATIONS Question TF #5
An NOL from a Subchapter C year can be used to offset operating income in an S
corporation year.
a.
True
b. False
1242. CHAPTER
12—S CORPORATIONS Question TF #6
An estate can be an S corporation shareholder.
a.
True
b. False
1243. CHAPTER
12—S CORPORATIONS Question TF #7
A maximum dollar sales limitation applies to an S corporation.
a.
True
b. False
1244. CHAPTER
12—S CORPORATIONS Question TF #8
Differences in distribution or liquidation rights among shareholders do not create a second class of stock.
a.
True
b. False
1245. CHAPTER
12—S CORPORATIONS Question TF #9
Straight debt issued in an S corporation year will not be treated as a second class of stock and will not disqualify
an S election.
a.
True
b. False
1246. CHAPTER
12—S CORPORATIONS Question TF #10
A widower and his spouse’s estate are treated as one shareholder.
a.
True
b. False
1247. CHAPTER
12—S CORPORATIONS Question TF #11
A former spouse is treated as being in the same family as the individual to
whom he or she was married.
a.
True
b. False
1248. CHAPTER
12—S CORPORATIONS Question TF #12
A limited liability company can own S corporation stock.
a.
True
b. False
1249. CHAPTER
12—S CORPORATIONS Question TF #13
An S corporation can be a partner in a partnership.
a.
True
b. False
1250. CHAPTER
12—S CORPORATIONS Question TF #14
Most Roth IRAs can own S corporation stock.
a.
True
b. False
1251. CHAPTER
12—S CORPORATIONS Question TF #15
For S corporation status to apply in the current tax year, the election must be
filed during the grace period before the 15th day of the third month of the
current year.
a.
True
b. False
