Identify Which of the Following Statements Is True

question 1

Multiple Choice

Identify which of the following statements is true.

• A) Convertible debt issues might be considered "stock" for purposes of the S corporation single class of stock requirement.
• B) A majority of shareholders must consent to the S corporation election.
• C) The S election must be made no later than the fifteenth day of the fourth month of the tax year for which the election is to be effective.
• D) All of the above are false.

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Definitions:

Kilowatt-hour

A unit of energy measurement equivalent to one kilowatt of power expended for one hour of time, commonly used for billing electricity usage.

Straight-line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, representing the asset’s decrease in value over time.

Factory Equipment

Fixed assets used in manufacturing processes, such as machinery and tools, necessary for producing goods.

Variable Cost

Outlays that are tied to the level of output or sales, including expenditures on materials and labor.