Which of the Following Facts Would Prevent an S Corporation

question 66

Multiple Choice

Which of the following facts would prevent an S Corporation election?
I.Magnificent Corporation has 125 shareholders.
II.Simms Corporation, incorporated in Kansas, has only one class of common stock issued and outstanding.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Income Growth

An increase in the amount of money received from work, investment, or other sources, over time, contributing to economic expansion or personal wealth.

World's Population

The total number of people currently living on Earth.

World's Output

The total production of goods and services by all countries and economies worldwide over a specified period of time.

Poorest 20 Percent

The segment of the population with the lowest income, representing the bottom quintile in the distribution of income or wealth.