Factors That Should Be Considered in Making the S Corporation

question 96

Multiple Choice

Factors that should be considered in making the S corporation election for the current tax year include the following:

• A)Are at least 80% of the shareholders willing to consent to the election?
• B)Can the requirements for qualification be satisfied by the due date of the tax return?
• C)Will the corporation have total capital not in excess of $1 million?
• D)None of the above.
• E)All of the above.

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Definitions:

Net Cash

The amount of cash available after accounting for all cash inflows and outflows within a specific period.

Investing Activities

Financial actions related to the acquisition or sale of assets, such as securities and property, aimed at generating income or appreciation.

Net Cash

The distinction between a business's overall cash receipts and disbursements.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the entity.