Chapter 12 - S CorporationsChapter 12 - S Corporations
Student: ___________________________________________________________________________
1. The alternative minimum tax may apply to an S corporation.
True False 2. The alternative minimum tax does not apply to an S corporation.
True False 3. Liabilities affect owners’ basis differently between a partnership and an S corporation.
True False 4. An S election allows shareholders to realize tax benefits from losses immediately.
True False 5. An NOL from a Subchapter C year can be used to offset operating income in an S corporation year.
True False 6. An estate can be an S corporation shareholder.
True False 7. A maximum dollar sales limitation applies to an S corporation.
True False 8. Differences in distribution or liquidation rights among shareholders do not create a second class of stock.
True False 9. Straight debt issued in an S corporation year will not be treated as a second class of stock and will not disqualify an S election.
True False 10. A widower and his spouse’s estate are treated as one shareholder.
True False 11. A former spouse is treated as being in the same family as the individual to whom he or she was married.
True False 12. A limited liability company can own S corporation stock.
True False 13. An S corporation can be a partner in a partnership.
True False 14. Most Roth IRAs can own S corporation stock.
True False 15. For S corporation status to apply in the current tax year, the election must be filed during the grace period before the 15th day of the third month of the current year.
True False 16. A limited liability company can make an S election.
True False 17. A voluntary revocation of an S election requires only a consent of shareholders owning a