Identify a True Statement About an S Corporation

question 74

Multiple Choice

Identify a true statement about an S corporation. 

• A)An S Corporation is required to have more than 100 stockholders.
• B)An S Corporation is required to have more than one type of stock outstanding.
• C)The income of an S Corporation passes through the company to the owners.
• D)The income of an S Corporation is taxed twice, at the corporate level and the owner level.
• E)The income of an S Corporation is taxed as capital gains to the owners.

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Definitions:

Increasing

A process or trend characterized by a growth or rise in quantity, size, or intensity.

Income Distribution

The way in which a nation’s total income is distributed among its population.

Inequality

A term referring to uneven distribution of income, wealth, opportunities, and social status among different groups in society.

United States

A country primarily located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.