Only 80% of the Shareholders Must Consent to an S

question 39

True/False

Only 80% of the shareholders must consent to an S election.

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Definitions:

Composite Methods

Depreciation techniques that combine multiple assets into a single group or pool and apply a uniform depreciation rate to the collective group, irrespective of individual asset life.

Depreciation Expense

Distributing the expense of a physical asset throughout its serviceable duration.

Residual Value

The estimated amount that an asset is expected to realize upon the end of its useful life, after deducting the cost of disposal.