Which of the Following Would Terminate a Subchapter S Election

question 9

Multiple Choice

Which of the following would terminate a Subchapter S election?

• A)Estate becomes a shareholder.
• B)Grantor trust becomes a shareholder.
• C)Voting trust becomes a shareholder.
• D)Partnership becomes a shareholder.

---

Definitions:

Amortized Cost

The cost of a financial asset or liability adjusted over time for amortization or depreciation, reflecting both the principal amount and any accrued interest or reduction.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a predetermined maturity date.

Bond Transactions

Financial transactions involving the issuance, trading, or redemption of bonds, which are debt securities that entities issue to raise capital.

Bond Sale

The issuance of debt securities by an entity to raise funds from investors, promising to pay back with interest.