Identify Which of the Following Statements Is True

question 28

Multiple Choice

Identify which of the following statements is true.

• A)All of the shareholders of an S corporation must consent to a revocation of the S election.
• B)A revocation of an S corporation election can be retrospective to any date.
• C)An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E&P.
• D)All of the above are true.

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Definitions:

Unit Sales

The quantity of products sold, not considering the price at which they were sold.

Contribution Margin

Contribution Margin is the amount of revenue remaining after deducting variable costs, which can then be used to cover fixed costs or generate profit.

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, culminating in the net income or loss.

Contribution Format

A type of income statement where costs are divided into variable and fixed categories, enabling analysis of contribution margin.