Identify Which of the Following Statements Is True

question 100

Multiple Choice

Identify which of the following statements is true.

• A)An election for an S corporation to use the Sec. 179 expensing election is made by the corporation and not by its shareholders.
• B)The S corporation's separately stated items are in general the same ones that apply in partnership taxation.
• C)An S corporation cannot claim a dividends-received deduction.
• D)All of the above are true.

---

Definitions:

Net 30

A trade credit term indicating that payment in full is expected within 30 days after the invoice date or goods are received.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Preferred Stock

Equity shares that give investors a claim on a company's earnings before dividends are paid to common stockholders, often with no voting rights.

Common Equity

The amount of ownership in a corporation that is held by common shareholders, represented by common stock.