Which Statement Is Incorrect with Respect to the Number-Of-Shareholders Test

question 96

Multiple Choice

Which statement is incorrect with respect to the number-of-shareholders test in filing an S election?

• A) Husband Jaime and wife Maria count as one shareholder.
• B) Grandmother Adela and granddaughter Maria count as one shareholder.
• C) Husband Jaime and the estate of wife Maria count as one shareholder.
• D) Husband Jaime and ex-wife Isabel count as one shareholder.
• E) None of the above statements is incorrect.

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Definitions:

Contract

A contractual accord enforceable by law, specifying duties and entitlements among two or more involved entities.

Tort Law

A body of law that addresses and provides remedies for civil wrongs not arising out of contractual obligations.

Perilous Situations

Circumstances that present significant risk or danger to safety or well-being.

General Duty

An obligation or requirement that one must adhere to in a specific role or context, often implying a standard level of care or responsibility.