Which of the Following Statements Is Correct Regarding S Corporation

question 107

Multiple Choice

Which of the following statements is correct regarding S corporation estimated taxes?

• A)S corporations never pay estimated taxes.
• B)S corporations with a federal income tax liability of $500 due to the built-in gains tax or excess net passive income tax must pay estimated taxes.
• C)S corporations that owe $5,000 in LIFO recapture tax only must pay estimated taxes.
• D)S corporations with a federal income tax liability of $100 due to the excess net passive income tax must pay estimated taxes.
• E)None of the choices are correct.

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, such that no single buyer or seller can influence the market price.

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The state of being free from unnecessary restrictions, allowing individuals to make choices regarding their lives and actions.

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