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:

Ointment

A semi-solid preparation applied topically to the skin or mucous membranes for therapeutic reasons.

Parenteral

Any medical therapy administered in a way other than through the digestive system, commonly including injections through intravenous, intramuscular, or subcutaneous methods.

Enema

A procedure in which liquid or gas is injected into the rectum to expel its contents or to introduce drugs or permit X-ray imaging.

Prescription

A written order from a healthcare professional authorizing a patient to be provided a medicine or treatment.