Which of the Following Statements Regarding S Corporations Is True

question 58

Multiple Choice

Which of the following statements regarding S corporations is true?

• A) If an S corporation's election terminates, the corporation is forced to liquidate.
• B) All states treat the S corporation as a taxable corporation for corporate franchise tax purposes.
• C) Generally, the transfer of property by a controlling shareholder to a newly-formed S corporation in exchange for stock is a nontaxable event.
• D) The owners of a new business should be indifferent between operating as an S corporation and a partnership.

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Definitions:

Dentate Gyrus

A part of the hippocampus involved in memory formation, thought to contribute to the generation of new memories.

Internal Carotid Arteries

Major arteries located on either side of the neck that supply blood to the brain, eyes, and parts of the face and scalp.

Vertebral Arteries

Pair of arteries that arise from the subclavian arteries and ascend in the neck to supply blood to the brain and spinal cord.

Supply Blood

The process of providing nutrients and oxygen to tissues through the circulatory system.