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:

Terminate

To bring to an end; in legal contexts, it often refers to ending a contract or employment.

Contract

An agreement between two or more parties that holds legal validity and can be enforced in a court of law.

Disregard

To pay no attention or too little attention to; to ignore or overlook intentionally.

Down Payment

A portion of the purchase price paid to the seller at the time of sale.