Which of the Following Statements Is Not True of S

question 78

Multiple Choice

Which of the following statements is not true of S corporations?

• A)S corporations are corporations that receive tax treatment similar to that given partnerships.
• B)Section 1231 gains and losses pass through separately to stockholders of an S corporation.
• C)The amount of losses that a shareholder of an S corporation may report on his or her tax return is limited to the basis of the stock plus any loans made by the shareholder to the corporation.
• D)If a taxpayer purchases stock in an S corporation from another shareholder during the year,the new shareholder may report the entire amount of any loss for the year attributable to the shares purchased.
• E)If a shareholder acquires 40 percent of the stock of an S corporation,the new shareholder cannot cause the corporation to lose its S corporation election.

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Definitions:

Language Deficits

Impairments or deficits in the ability to use or comprehend spoken, written, or other language symbols.

Brain Abnormalities

Structural or functional deviations in the brain that affect normal brain operation.

Gender Differences

Variations in the characteristics, behavior, physical and psychological traits, and social structures between males and females.

Anhedonia

The incapacity to experience enjoyment in activities that typically bring pleasure.