Using the Legend Provided, Classify Each Statement Accordingly

question 36

Multiple Choice

Using the legend provided, classify each statement accordingly.
-Upon its formation, § 351 tax deferral can apply.

• A)Applies only to the income taxation of C corporations.
• B)Applies only to the income taxation of S corporations.
• C)Applies to both the income taxation of C corporations and S corporations.
• D)Applies to neither the income taxation of C corporations nor of S corporations.

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Definitions:

Corporate Form

A legal entity structure for a business, recognized by the law as separate from its owners, and offering limited liability.

Legal Forms

Document templates that are required or recommended in legal transactions, used to ensure compliance with the law.

Business Enterprise

An organization engaged in commercial, industrial, or professional activities with the aim of generating profit.

Proprietorships

A form of business organization owned by a single individual who is responsible for all its obligations.