Identify Which of the Following Statements Is True

question 87

Multiple Choice

Identify which of the following statements is true.

• A)The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.
• B)A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made.
• C)For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
• D)All of the above are true.

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Definitions:

Paregoric

An opium tincture used historically to treat diarrhea by decreasing bowel movements and to alleviate pain with its sedative effects.

Schedule I

A category of controlled substances that have a high potential for abuse, no currently accepted medical use in the United States, and lack accepted safety for use under medical supervision.

Abuse Potential

The likelihood or risk that a substance, often a drug, can lead to dependency or addiction in users.

Controlled Substances

Drugs or chemicals whose manufacture, possession, and use are regulated by government agencies due to their potential for abuse or addiction.