Bobby T (95% Owner) Would Like to Elect S Corporation

question 93

True/False

Bobby T (95% owner) would like to elect S corporation status for DJ, Inc. but Dallas (5% owner) does not want to elect S corporation status. Bobby T cannot elect S status for DJ, Inc. without Dallas' consent.

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Definitions:

Equity Securities

Equity securities represent an ownership interest held in a company by individuals or firms in the form of stocks.

Classification

The process of organizing data or items into categories based on their similarities, properties, or characteristics.

Accounting Method

An accounting method is a set of rules that determine how and when income and expenses are recorded in the financial statements.

Investments

Assets purchased with the expectation that they will generate income or appreciate in the future.