Which Statement Is Incorrect with Respect to the Number-Of-Shareholders Test

question 96

Multiple Choice

Which statement is incorrect with respect to the number-of-shareholders test in filing an S election?

• A) Husband Jaime and wife Maria count as one shareholder.
• B) Grandmother Adela and granddaughter Maria count as one shareholder.
• C) Husband Jaime and the estate of wife Maria count as one shareholder.
• D) Husband Jaime and ex-wife Isabel count as one shareholder.
• E) None of the above statements is incorrect.

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Definitions:

Estate

The total of all the property, assets, and debts left by an individual at death.

Ownership Interest

The possession of rights, control, and benefits of ownership in property or a company by an individual or entity.

Land

An area of the earth's surface, including its resources and physical environment, which can be owned or used.

Life Estate

An ownership interest in which the holder has the right to possess the property until his or her death.