4) Identify which of the following statements is true. A) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation. B) A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made. C) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership. D) All of the above are true. 5) Identify which of the following statements is true. A) A partnership can be an S corporation shareholder. B) A nonresident alien can be an S corporation shareholder. C) An S corporation can have more than 100 individual shareholders, since families are treated as a single shareholder. D) All of the above are false. 8) Identify which of the following statements is true. A) The overall S corporation loss limitation equals the shareholder's adjusted basis for his/her S corporation stock plus his/her ratable share of all S corporation liabilities. B) The loss pass-throughs from an S corporation may produce a net operating loss for the shareholder. C) An S corporation shareholder can increase the adjusted basis of his/her stock by any indebtedness owed the shareholder by the S corporation. D) All of the above are false.
4) Identify which of the following statements is true. A) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation. B) A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made. C) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership. D) All of the above are true. 5) Identify which of the following statements is true. A) A partnership can be an S corporation shareholder. B) A nonresident alien can be an S corporation shareholder. C) An S corporation can have more than 100 individual shareholders, since families are treated as a single shareholder. D) All of the above are false. 8) Identify which of the following statements is true. A) The overall S corporation loss limitation equals the shareholder's adjusted basis for his/her S corporation stock plus his/her ratable share of all S corporation liabilities. B) The loss pass-throughs from an S corporation may produce a net operating loss for the shareholder. C) An S corporation shareholder can increase the adjusted basis of his/her stock by any indebtedness owed the shareholder by the S corporation. D) All of the above are false.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:4) Identify which of the following statements is true.
A) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form
of business without being subject to the tax disadvantage of double taxation.
B) A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S
election can be made.
C) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for
an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.
D) All of the above are true.
5) Identify which of the following statements is true.
A) A partnership can be an S corporation shareholder.
B) A nonresident alien can be an S corporation shareholder.
C) An S corporation can have more than 100 individual shareholders, since families are treated as a single shareholder.
D) All of the above are false.
8) Identify which of the following statements is true.
A) The overall S corporation loss limitation equals the shareholder's adjusted basis for his/her S corporation stock plus
his/her ratable share of all S corporation liabilities.
The loss pass-throughs from an S
oration may produce a net operating loss for the shareholder.
C) An S corporation shareholder can increase the adjusted basis of his/her stock by any indebtedness owed the
shareholder by the S corporation.
D) All of the above are false.
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