Which of the Following Statements Is Correct Regarding S Corporation

question 78

Multiple Choice

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

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

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Definitions:

Stretcher

A portable bed or frame used for transporting patients in need of medical care, especially in emergency situations.

Avoids Looking

A behavior where an individual intentionally avoids eye contact or direct visual engagement, potentially indicating discomfort, disinterest, or social anxiety.

Continuous Staring

The act of looking intently at something or someone for an extended period without breaks, often considered rude or indicative of curiosity or fixation.

Multiple Bruises

The presence of several contusions or injuries on the skin, typically resulting from blunt force trauma, characterized by discoloration and pain.