An S Election Is Terminated If the S Corporation Has

question 23

True/False

An S election is terminated if the S corporation has passive investment income in excess of 20 percent of gross receipts for three consecutive years.
The amount is 25 percent of gross receipts for three consecutive years.

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Definitions:

Competence Development

The process of acquiring and developing the skills and knowledge necessary to perform effectively.

Physical Skills

Abilities that involve the use and coordination of one's bodily movements and strength, often developed through practice and training.

Language Skills

Denotes the capacity to use language effectively for communication, which includes speaking, listening, reading, and writing.

Social Emotional Skills

Competencies in managing emotions, establishing positive relationships, and making responsible decisions.