Identify Which of the Following Statements Is False

question 58

Multiple Choice

Identify which of the following statements is false.

• A) An S corporation that owes the built- in gains tax or the excess net passive income tax must make quarterly estimated tax payments.
• B) An S corporation's ordinary income or loss is reported by an individual shareholder on Schedule E of Form 1040.
• C) An S corporation files a Form 1120S corporate income tax return on or before the 15th day of the fourth month following the close of its tax year.
• D) An S corporation cannot use the prior- year tax liability exception when determining the required payment to be made with respect to the built- in gains tax.

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Definitions:

Perfectly Inelastic

A situation in demand or supply in which the quantity demanded or supplied does not change regardless of changes in price.

Quantity Demanded

The specific amount of a good or service consumers are willing to purchase at a given price.

Price Changes

Variations in the cost of goods and services over time in the market.

Price Elasticity

A measure of the sensitivity of demand for a product relative to changes in its price.