Which of the Following Statements Is Correct Regarding S Corporation

question 125

Multiple Choice

Which of the following statements is correct regarding S corporation estimated taxes?

• A) S corporations never pay estimated taxes.
• B) S corporations with a federal income tax liability of $500 due to the built-in gains tax or excess net passive income tax must pay estimated taxes.
• C) S corporations that owe $5,000 in LIFO recapture tax only must pay estimated taxes.
• D)S corporations with a federal income tax liability of $100 due to the excess net passive income tax must pay estimated taxes.
• E)None of these

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Definitions:

Domestic Supply

The total quantity of a product or service produced within a country and available for domestic consumption or sale.

Domestic Demand

The total demand for goods and services within a country's borders, not including exports or imports.

Import Quota

A government-imposed limit on the quantity of a certain type of good that can be imported into a country, aimed at protecting domestic industries and workers.

Total Revenue

Total revenue is the total amount of money received by a company for goods sold or services provided during a certain period.