Which Statement Is Incorrect with Respect to the Number-Of-Shareholders Test

question 96

Multiple Choice

Which statement is incorrect with respect to the number-of-shareholders test in filing an S election?

• A) Husband Jaime and wife Maria count as one shareholder.
• B) Grandmother Adela and granddaughter Maria count as one shareholder.
• C) Husband Jaime and the estate of wife Maria count as one shareholder.
• D) Husband Jaime and ex-wife Isabel count as one shareholder.
• E) None of the above statements is incorrect.

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Definitions:

White-Collar Crime

A variety of nonviolent illegal acts against society that occur most frequently in the business context.

Nonviolent Illegal Acts

Activities that break the law but do not involve the use of physical force or violence.

Felony

A serious crime that is punishable by more than one year in prison, as opposed to a misdemeanor, which is less severe.

Imprisonment

The act of confining someone in a prison or similar facility as punishment for a crime or legal offense.