Identify Which of the Following Statements Is True

question 87

Multiple Choice

Identify which of the following statements is true.

• A)The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
• B)A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made.
• C)For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
• D)All of the above are true.

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Definitions:

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Voluntary Stable

Refers to a situation or condition that is maintained voluntarily by individuals or entities because it is seen as desirable or beneficial.

Pacific Islanders

Peoples of the Pacific Islands, which includes three ethnogeographic groupings: Melanesia, Micronesia, and Polynesia, each with its own cultures, languages, and histories.

Cohabitation

A living arrangement in which two unrelated people are unmarried but live together and are in a sexual relationship.