Which Statement Is Incorrect About an S Corporation

question 154

Multiple Choice

Which statement is incorrect about an S corporation?

• A)Nonresident aliens cannot own S corporation stock.
• B)A one-person LLC can be an S shareholder.
• C)A partnership can own S corporation stock.
• D)An S corporation can be a partner in a partnership.
• E)None of the above statements is incorrect.

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.

Interest Expense

The cost incurred by an entity for borrowed funds; interest payments made on debts.

Account Balance

The amount of money in an account, calculated by adding all debits and subtracting all credits.