Which Statement Is Incorrect with Respect to an S Shareholder's

question 44

Multiple Choice

Which statement is incorrect with respect to an S shareholder's consent?

• A)A consent extension is available only if Form 2553 is filed on a timely basis, reasonable cause is given, and the interests of the government are not jeopardized.
• B)Both husband and wife must consent if one owns the stock as community property.
• C)An S election requires a consent from all of the S corporation's shareholders.
• D)A consent must be in writing.
• E)None of the above statements is incorrect.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost of producing each unit of output.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, or insurance premiums.

Total Cost

The total expense of producing goods, encompassing both constant and fluctuating expenses.

Total Cost

Total cost is the complete cost of production that includes both fixed and variable costs.