Which of the Following Statements Is Correct Regarding S Corporation

question 125

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 these

---

Definitions:

Doughboys

were the U.S. infantrymen during World War I, known for their role in the European theater of the war.

Trenchfoot

A medical condition caused by prolonged exposure of the feet to damp, unsanitary, and cold conditions, often seen in soldiers in trench warfare.

"Over the Top"

A phrase originally used in World War I to describe an infantry attack that went out of the protection of trenches into no-man's land, often used metaphorically to denote an excessive action.

Middle-Class Volunteers

Individuals from the middle-income group who offer their service for a cause or organization without monetary compensation.