Identify Which of the Following Statements Is False

question 43

Multiple Choice

Identify which of the following statements is false.

• A)An S corporation files a Form 1120S corporate income tax return on or before the 15th day of the fourth month following the close of its tax year.
• B)An S corporation's ordinary income or loss is reported by an individual shareholder on Schedule E of Form 1040.
• C)An S corporation that owes the built-in gains tax or the excess net passive income tax must make quarterly estimated tax payments.
• D)An S corporation cannot use the prior-year tax liability exception when determining the required payment to be made with respect to the built-in gains tax.

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Definitions:

Depletion Rate

The rate at which a natural resource is used or consumed, important for accounting and valuation of resource-based companies.

Extractable Ore

Refers to the portion of a mineral or natural resource deposit that can be economically and legally extracted or produced at the time of consideration.

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.