An S Corporation Shareholder Calculates His Initial Basis Upon Formation

question 43

True/False

An S corporation shareholder calculates his initial basis upon formation of the corporation like C corporation shareholders.

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Definitions:

Project

A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Eighteen Months

A time period equal to one and a half years.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the involved parties to be enforceable.

Enforceable Contract

A legally binding agreement that can be upheld in a court of law.