Identify Which of the Following Statements Is True

question 76

Multiple Choice

Identify which of the following statements is true.

• A)An S corporation cannot own any stock of another corporation.
• B)An S corporation cannot own 100% of the stock of another S corporation.
• C)An S corporation that owns all of the stock of a Qualified Subchapter S Subsidiary (QSub)must report all the income, deductions, and losses of the subsidiary on its own tax return.
• D)All of the above are true.

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Definitions:

Unconditional Assignment

A legal transfer of all rights and interests in a policy or contract to another party without any conditions.

Obligor

An individual or entity legally bound to provide a payment or perform a service under the terms of a contract.

Defenses

Legal reasons or arguments that can be used by a defendant to challenge a lawsuit in court.

Obligee

One to whom an obligation is owed.