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:

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Soybean Oil

A vegetable oil extracted from the seeds of the soybean, commonly used in cooking and in the production of processed foods.

Margarine

A processed food product made primarily from vegetable oils, used as a butter substitute.

Price Of Gasoline

The cost at which gasoline is sold, determined by various factors including crude oil prices, taxes, demand, and supply conditions.