Solved by verified expert :1291. CHAPTER
12—S CORPORATIONS Question TF #55
Passive investment income includes net capital gains from the sale of stocks
and securities.
a.
True
b. False
1292. CHAPTER
12—S CORPORATIONS Question TF #56
Compensation for services rendered to an S corporation is subject to FICA
taxes.
a.
True
b. False
1293. CHAPTER
12—S CORPORATIONS Question TF #57
The § 1202 exclusion of gain is available on disposition of S corporation
stock.
a.
True
b. False
1294. CHAPTER
12—S CORPORATIONS Question TF #58
It is beneficial for an S corporation to issue § 1244 stock.
a.
True
b. False
1295. CHAPTER
12—S CORPORATIONS Question MC #1
Which statement is false?
a.
S corporations are treated as corporations under state law.
b. The alternative minimum tax applies
to an S corporation.
c. Liabilities affect S shareholders
differently than partners.
d. S corporations may not allocate
income like partnerships.
e. None of the above.
1296. CHAPTER
12—S CORPORATIONS Question MC #2
An S corporation may be subject to the following tax:
a.
Corporation income tax (§ 11).
b. Passive investment income tax.
c. Alternative minimum tax.
d. None of the above applies to S
corporations.
1297. CHAPTER
12—S CORPORATIONS Question MC #3
Which statement is false?
a.
S corporation status provides many of the benefits of partnership treatment.
b. S corporation shareholders have
limited liability.
c. Distributions of appreciated assets
are nottaxable in an S corporation.
d. The personal holding company tax does
not apply to an S corporation.
e. None of the above.
1298. CHAPTER
12—S CORPORATIONS Question MC #4
Which statement is false?
a.
Partnership taxation rules do not apply to S corporations.
b. A two-or-more member LLC operates
under partnership principles.
c. All income of an S corporation flows
through to the S shareholders.
d. S shareholders may use their
proportionate shares of NOLs currently.
e. None of the above.
1299. CHAPTER
12—S CORPORATIONS Question MC #5
Which statement is true?
a.
Charitable contributions are subject to the 10% limitation at the corporate
level.
b. The at-risk rules apply to S
corporations.
c. The passive loss limitations do not
apply to S corporations.
d. S corporations are exempted from
state and local taxes.
e. None of the above.
1300. CHAPTER
12—S CORPORATIONS Question MC #6
An S corporation must possess the following characteristic(s):
a.
No more than 100 shareholders.
b. Corporation organized in the U.S.
c. Only one class of stock.
d. All of the above are required of S
corporations.
e. None of the above is required for S
corporations.
