Which of the Following Statements Regarding S Corporations Is True

question 18

Multiple Choice

Which of the following statements regarding S corporations is true?

• A) An S corporation may have no more than 50 shareholders.
• B) Any individual, estate, corporation, or trust may be an S corporation shareholder.
• C) An S corporation may have only one class of stock.
• D) An S corporation shareholder's allocable share of ordinary income is subject to self-employment tax.

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Definitions:

Unnecessary Comments

Remarks or observations that are not relevant or required in a given context.

Uncomfortable

A state of physical or psychological discomfort or unease.

Premenstrual Syndrome

A collection of physical and emotional symptoms that some women experience before their menstrual period.

Hormonal Fluctuations

Variations in the level of hormones in the body, which can affect mood, health, and behavior.