Which Tax Provision Does Not Apply to an S Corporation

question 131

Multiple Choice

Which tax provision does not apply to an S corporation?

• A)DPAD.
• B)Section 1244 stock.
• C)Penalty for failure to file.
• D)10% charitable contribution limitation.
• E)Estimated tax payments.

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Definitions:

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Payback Period Method

A capital budgeting method that calculates the time required for an investment to generate cash flows to recover its initial cost.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A metric used in financial analysis to estimate the profitability of potential investments.