Identify Which of the Following Statements Is True

question 62

Multiple Choice

Identify which of the following statements is true.

• A)Shareholders who acquire stock in an S corporation after the election date and prior to the election's effective date must consent to the election.
• B)S corporation consent by shareholders is binding on the current tax year and all future tax years.
• C)Only shareholders who own stock on the date an S election takes effect must consent to the election.
• D)All of the above are false.

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Definitions:

Task Expertise

The specialized skills and knowledge required to perform a specific job or function effectively.

Creative Decisions

Decision-making that involves the generation of new, original, and innovative ideas or solutions.

Creative People

Individuals who possess the ability to think outside the box and generate innovative ideas or solutions.

Unrelated Facts

information or data points that do not have a connection or relevance to each other.