Which Statement Is Incorrect

question 103

Multiple Choice

Which statement is incorrect?

• A)S corporation status allows shareholders to realize tax benefits from corporate losses immediately.
• B)Shareholder-level tax on corporate profits can be eliminated by a step-up in the basis of the stock upon a shareholder's death.
• C)Fewer than 50% of all U.S.corporations make the S election.
• D)An S corporation resembles an LLC for Federal income tax purposes.
• E)None of the above.

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Definitions:

Perimeter

The total length around the boundary of a two-dimensional shape.

Falling Object

An object that is under the sole influence of gravity, typically described in physics with equations of motion.

Picture

A visual representation of an object, scene, or person produced on a surface.

Dimensions

Measurements that define the size or shape of an object, often used in geometry to describe figures in two or three-dimensional space.