Which of the Following Will Disqualify a Corporation from Electing

question 47

Multiple Choice

Which of the following will disqualify a corporation from electing Subchapter S status?

• A)The corporation has 80 shareholders.
• B)The corporation has one class of stock.
• C)The election form is signed by 80% of the shareholders.
• D)All shareholders are U.S.citizens except for 10% who are resident aliens.

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Definitions:

Variable Overhead

Costs of indirect manufacturing that change with the level of production output, such as utilities for the manufacturing plant.

Efficiency Variance

The difference between the actual amount of input (time, materials, etc.) used in production and the standard amount expected to be used.

Direct Labor-Hours

The sum of the hours spent by workers directly manufacturing a product.

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials used in the manufacturing process.