Which of the following events will result in the automatic termination of S corporation status? The shares of a deceased shareholder pass to their estate. O 20% of the S corporation's shares are sold to a partnership. Gross receipts exceed $5 million for three consecutive years. The S corporation becomes a 5% owner of a C corporation.

Which of the following events will result in the automatic termination of S corporation status? The shares of a deceased shareholder pass to their estate. O 20% of the S corporation's shares are sold to a partnership. Gross receipts exceed $5 million for three consecutive years. The S corporation becomes a 5% owner of a C corporation.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter12: S Corporations

Section: Chapter Questions

Problem 7DQ

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Question

Which of the following events will result in the automatic termination of S corporation status?

The shares of a deceased shareholder pass to their estate.

O 20% of the S corporation's shares are sold to a partnership.

Gross receipts exceed $5 million for three consecutive years.

The S corporation becomes a 5% owner of a C corporation.

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