Identify Which of the Following Statements Is True

question 22

Multiple Choice

Identify which of the following statements is true.

• A)Perry Corporation, an S corporation, receives $10,000 of dividends from a 25%-owned domestic corporation. Perry is allowed an 80% dividends-received deduction with respect to the distribution.
• B)An NOL is incurred by a C corporation in the current tax year. The C corporation makes an S election for the following tax year. The entire C corporation NOL carryover can be passed through to the S corporation's shareholders at the end of the following tax year.
• C)Tax-exempt interest earned by an S corporation is not reported to its shareholders because it is excluded from the shareholders' gross income.
• D)All of the above are false.

---

Definitions:

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often leading to serious complications.

Allergy

A condition in which the immune system reacts abnormally to a foreign substance, causing adverse effects.

Slight Muscle Aches

Slight Muscle Aches refer to minor or mild discomfort, soreness, or pain in the muscles, often resulting from physical exertion or tension.

Chronic Obstructive Pulmonary Disease

A progressive lung disease that makes it hard to breathe due to obstruction of the airways.