An S Corporation Election May Be Terminated If the Corporation

question 2

Multiple Choice

An S corporation election may be terminated if the corporation has excessive passive investment income.An example of what is not passive investment income is

• A)Dividends from a corporation of which the S corporation owns 50% of the stock
• B)Gross receipts from an annuity
• C)Rental income form a net lease
• D)Interest on notes not involving the sale of inventory
• E)Room rents paid to a hotel

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Definitions:

Communal Relationship

A type of social connection where individuals prioritize the welfare of the group over personal gains, often characterized by shared responsibilities and benefits.

Distributive

Related to the allocation or distribution of resources among members of a community or society.

Anxiety Dimension

A feature or aspect of anxiety that can vary in intensity, from mild unease or worry to severe panic or fear, often affecting behavior and decision-making.

Attachment

A deep and enduring emotional bond that connects one person to another across time and space, often discussed in the context of relationships between infants and caregivers and adult romantic partnerships.