For S Corporations Without Earnings and Profits from Prior C

question 73

True/False

For S corporations without earnings and profits from prior C corporation years, the taxation of distributions to the shareholder is very similar to the rules for partnerships.

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Definitions:

Acceptance

The agreement to the terms of an offer, contract, or proposal, thereby creating a binding legal obligation.

Roof

The structure covering the top of a building, designed to protect against weather, animals, and other external factors.

Invitation

An offer to deal or negotiate that indicates a willingness to enter into a contract under specified terms.

Firm Offer

An offer made in writing by a merchant guaranteeing to hold the offer open for a specified period of time without revocation.