Factors That Should Be Considered in Making the S Corporation

question 162

Multiple Choice

Factors that should be considered in making the S corporation election for the current tax year include the following:

• A) Are greater than 50% of the shareholders willing to consent to the election?
• B) Can the requirements for qualification be satisfied by the 15th day of the third month of the tax year and also for the period of the tax year that precedes this date?
• C) Will the corporation have total capital not in excess of $1 million?
• D) Only b. and c.
• E) a., b., and c.

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Definitions:

Fine Motor Movements

Precise movements made by small muscles, typically involving coordination between the eyes and hands, such as writing or buttoning a shirt.

Motor Cortex

A structure in the frontal lobe that controls fine motor movement in the body.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobes, involved in decision making, social behavior, personality, and cognitive planning.

Frontal Cortex

The part of the brain located in the front of the skull, responsible for high-level cognitive functions and decision making.