To Qualify for Subchapter S Treatment Under the Internal Revenue

question 39

True/False

To qualify for Subchapter S treatment under the Internal Revenue Code (IRC), a domestic corporation must have more than 35 shareholders.

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Definitions:

Endowment Fund

An endowment fund is a financial asset, in the form of donated funds or property, invested to generate income for a specific purpose, usually non-profit.

Consolidated Statement

A financial report that shows aggregated financial data for a parent company and its subsidiaries, presenting the financial position and results of operations as a single entity.

Summarized Listing

A condensed version of a list that highlights main points or entries, often used for quick reference.

Fund Balances

The net assets in governmental funds, representing the difference between assets and liabilities.