Which of the Following Statements Is Correct Regarding S Corporation

question 107

Multiple Choice

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

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

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Definitions:

Spiracles

Small openings on the surface of some animals, such as insects, that allow air to enter and exit the respiratory system.

Tracheal Tubes

Tracheal tubes are part of the respiratory system of certain invertebrates, including insects, providing direct exchange of air through the body.

Countercurrent Exchange

Exchange of substances between two fluids moving in opposite directions.

Gill Capillaries

Small blood vessels within the gills of fish that facilitate the exchange of oxygen and carbon dioxide with water.