Which of the Following Are Unique for an S Corporation

question 29

Multiple Choice

Which of the following are unique for an S corporation?

• A)The firm's profits and losses are not taxed at the corporate level,but shareholders must include these profits and losses on their individual tax returns.
• B)The shareholders of an S corporation must include the firm's profit and losses in their individual income taxes even if no money is distributed to them.
• C)There is a maximum limit on the number of shareholders for an S corporation.
• D)all of the above

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Definitions:

FIFO

First In, First Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Net Income

The total profit or loss of a company after all revenues, expenses, taxes, and dividends have been accounted for.