Identify a Disadvantage of Being an S Corporation

question 32

Multiple Choice

Identify a disadvantage of being an S corporation.

• A)Estates can be shareholders.
• B)Losses flow through immediately to the shareholders.
• C)The AMT on corporations is avoided.
• D)Tax-exempt income flows through as excludible to shareholders.
• E)None of the above is a disadvantage of the S election.

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Definitions:

Anteroposterior

Relating to or indicating direction from the front to the back of the body.

Posteroanterior

Pertaining to or involving passage from the back to the front, especially reference to the direction of an X-ray beam.

Lateral

Positioned at or relating to the side.

Angiocardiogram

An imaging test that uses X-rays to take pictures of the blood vessels in the heart.