Identify Which of the Following Statements Is True

question 50

Multiple Choice

Identify which of the following statements is true.

• A)Beach Corporation, an S corporation, has gross receipts of $240,000; taxable income of $120,000; passive investment income of $100,000; and expenses directly attributable to the passive investment income of $20,000. The corporation's excess net passive income is $32,000.
• B)The built-in gains tax applicable to S corporations can be avoided if the property is held for ten years.
• C)An S corporation generally will not owe the built-in gains tax if the corporation has never been a C corporation.
• D)All of the above are true.

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Definitions:

Bad News

Information or notifications that have negative implications or outcomes.

Shock Reduction

Measures or techniques applied to lessen the intensity or impact of shocks or stressors, typically in physical, psychological, or mechanical contexts.

Overtime Pay

Additional compensation paid to employees for hours worked beyond their standard scheduled work hours, as regulated by law or company policy.

Hostile Reaction

A negative response expressed with anger, opposition, or resentment, often in reaction to a perceived threat or insult.