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:

Internal Legal Memorandum

A document written within a legal office or department, summarizing the facts, issues, and conclusions of a particular legal matter.

Final Section

The last part of a document, presentation, or musical piece, concluding its content.

Plain English

The use of clear, straightforward, and easy-to-understand language, especially in legal documents and communications.

Well Reasoned

An argument or decision that is logical, well thought out, and based on evidence or sound reasoning.