Which of the Following Will Render a Corporation Ineligible for S

question 60

Multiple Choice

Which of the following will render a corporation ineligible for S corporation status?
I.The corporation has 125 stockholders.
II.One of the stockholders is another corporation.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Goods

Tangible personal property that includes a wide range of objects such as appliances, furniture, electronics, and more.

Wholesalers

Entities in the supply chain that buy large quantities of goods from manufacturers to resell to retailers or directly to the consumers.

Negligence Suit

A legal action brought against an individual or entity accused of failing to exercise a level of care that a reasonably prudent person would in a similar situation, resulting in harm or damage.

Defective Product

is a product that fails to meet safety standards or does not operate as advertised, potentially causing harm to consumers.