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:

Unsatisfactory Service

A situation where the quality or extent of service provided falls below acceptable standards or fails to meet expectations.

Persuasive Claim

A statement designed to convince or influence the audience to adopt a particular belief or take a specific action.

Persuasive Request

involves crafting a message with the intent to convince the reader to comply with a specific request, often through rational argumentation and emotional appeal.

Merit

The quality of being particularly good or worthy, especially so as to deserve praise or reward.