The S Corporation Rules Are Less Complex for S Corporations

question 148

True/False

The S corporation rules are less complex for S corporations that have earnings and profits from prior C corporation years than for S corporations that do not have earnings and profits from prior C corporation years.

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that insures deposits at banks and savings associations up to a certain limit.

Public Corporation

A corporation that is created by government to help administer law.

Retained Earnings

Profits that a corporation keeps.

Profitable Year

A fiscal period during which a company's revenue exceeds its expenses, resulting in profit.