In Terms of an S Corporation, Which of the Following

question 48

Multiple Choice

In terms of an S corporation, which of the following is a requirement that must be maintained so that the corporation does not lose its tax status?

• A) There can be no more than 80 shareholders in an S corporation.
• B) The shareholders must all be corporate shareholders or partnerships.
• C) The losses and earnings are not to be reported on the shareholders' individual tax returns.
• D) Shareholders must consent in writing to having the corporation taxed as a partnership.

---

Definitions:

PP&E

Property, Plant, and Equipment - tangible long-lived assets used in the normal course of business to produce goods and services.

Sale Of Land

This transaction involves the disposal of land owned by an entity, which can affect the financial statements through gains or losses.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments not considered cash equivalents, as referred to in a company's cash flow statement.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at multiple points in time, facilitating trend analysis and financial health assessment.