The § 1202 Exclusion of _________________ on the Disposition of Small

question 108

Short Answer

The § 1202 exclusion of _________________ on the disposition of small business stock (is/is not) _________________ available for S stock.

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Definitions:

Indefinite Life

An accounting term for assets that are not subject to depreciation due to their perpetual existence or usefulness.

Outstanding Common Stock

Shares that are issued by a company and held by investors, excluding any shares held as treasury stock by the company itself.

Annual Amortization

The systematic reduction of the cost (or other basis) of an intangible asset over a specified time period.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.