Which of the Following Statements Is Incorrect

question 57

Multiple Choice

Which of the following statements is incorrect?

• A) S corporation losses can offset shareholder income from other sources.
• B) S corporation income is taxed to shareholders when earned.
• C) S corporations must allocate income and expenses to their shareholders based on their proportionate ownership interest.
• D) The number of S corporation shareholders is unlimited.

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Definitions:

Font Spacing

The adjustment of the distance between characters in typesetting, which can affect readability and visual appeal in text.

Condensed

A descriptor for a font or layout that has reduced spacing, allowing more characters or elements to fit within a given space.

Superscript

A typographical feature where text is reduced in size and raised above the baseline, often used for footnotes, mathematical exponents, or abbreviations.

Merge Cells

A function in spreadsheet software that combines two or more cells into a single cell, often used to create a single header over multiple columns.