A Testamentary Trust Can Be an S Shareholder for Two

question 40

True/False

A testamentary trust can be an S shareholder for two years, beginning on the date the stock transfers to the trust.

---

Definitions:

Selling Expenses

Costs incurred directly and indirectly in selling a product, such as commissions, advertising, and promotional materials.

Advertising Merchandise

Promotional items branded with a logo or slogan and distributed as part of a marketing strategy.

Displaying Merchandise

The practice of arranging products in a retail setting to maximize visibility and aesthetic appeal, thereby enhancing the potential for sales.

Perpetual Inventory System

An inventory accounting method where updates are made continuously to the inventory account as sales or purchases occur.