Identify Which of the Following Statements Is True

question 19

Multiple Choice

Identify which of the following statements is true.

• A)The overall S corporation loss limitation equals the shareholder's adjusted basis for his/her S corporation stock plus his/her ratable share of all S corporation liabilities.
• B)The loss pass-throughs from an S corporation may produce a net operating loss for the shareholder.
• C)An S corporation shareholder can increase the adjusted basis of his/her stock by any indebtedness owed the shareholder by the S corporation.
• D)All of the above are false.

---

Definitions:

Wind

The movement of air from areas of high pressure to low pressure, often responsible for changes in weather.

Temperature

The average kinetic energy of the particles in a sample of a substance.

Stomatal Opening

The process by which stomata, the microscopic pores on leaves, open to allow for gas exchange between the plant and its environment.

Wavelengths

The distance between successive crests of a wave, especially points in a sound wave or electromagnetic wave.