An S Corporation Must Possess Which of the Following Characteristics

question 95

Multiple Choice

An S corporation must possess which of the following characteristics?

• A) Not more than one hundred shareholders.
• B) Corporation organized in the U.S.
• C) Only one class of stock.
• D) All of the above are required of an S corporation.
• E) None of the above are required of an S corporation.

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Definitions:

Taxable

Pertaining to income or transactions subject to tax by governmental authorities.

Income Tax Rate

The percentage of an individual's or corporation's income that is paid to the government as tax.

Income Tax Expense

The total amount of income tax a company is obligated to pay to government authorities, based on its taxable income.

Accrued Warranty Expense

The estimated cost of repair, replacement, or restitution that a company expects to incur under its product warranties, recognized before the actual expenses occur.