Which of the Following Will Render a Corporation Ineligible for S

question 60

Multiple Choice

Which of the following will render a corporation ineligible for S corporation status?
I.The corporation has 125 stockholders.
II.One of the stockholders is another corporation.
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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:

Bid and Ask Prices

The bid price is the highest price a buyer is willing to pay for a security, while the ask price is the lowest price a seller is willing to accept.

Bid-Ask Spread

The difference between the highest price that buyers are willing to pay for an asset and the lowest price that sellers are willing to accept.

Commission Income

Revenue earned by an individual or company for facilitating a transaction or service, often a percentage of the transaction value.

Price Continuity

The concept that securities should have consistent pricing through time without large gaps or discontinuities.