An S corporation election terminates automatically in any of the following cases except: Select one: O a. The corporation has more than 100 shareholders. O b. The corporation has a partnership as a shareholder. O c. The election is revoked. Od. The corporation has an estate as a shareholder.

An S corporation election terminates automatically in any of the following cases except: Select one: O a. The corporation has more than 100 shareholders. O b. The corporation has a partnership as a shareholder. O c. The election is revoked. Od. The corporation has an estate as a shareholder.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 3DQ

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

An S corporation election terminates automatically in any of the following cases
except:
Select one:
O a.
The corporation has more than 100 shareholders.
O b. The corporation has a partnership as a shareholder.
O C. The election is revoked.
O d. The corporation has an estate as a shareholder.

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