Identify Which of the Following Statements Is False

question 94

Multiple Choice

Identify which of the following statements is false.

• A)The AAA balance can be negative, but the shareholder's basis in the S corporation stock cannot be less than zero.
• B)The AAA represents the cumulative income/loss recognized in post-1982 S corporation years.
• C)Nonmoney property distributions made by an S corporation having accumulated E&P are treated differently when determining the corporate-level gain recognized under Sec. 311 than are property distributions made by an S corporation without accumulated E&P.
• D)Tax-exempt income does not increase the AAA but increases the basis of the S corporation stock.

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Definitions:

Behavior

The actions or reactions of a person or animal in response to external or internal stimuli.

Trait

A characteristic way of thinking, feeling, or behaving that is consistent over time and across situations.

Five-Factor Theory

A model in psychology that describes human personality as composed of five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Trait Theories

Theories in psychology that focus on the identification and measurement of specific, consistent personality characteristics.