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Exam 15: S Corporations

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Question 31

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An S election is made on the shareholder's Form 2553.

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Question 32

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An S shareholder's stock basis does not include a ratable share of S corporation liabilities.

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Question 33

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An S corporation must possess which of the following characteristics?

During the year, Miles Nutt, the sole shareholder of a calendar year S corporation, received a distribution of $16,000. At the end of last year, his stock basis was $4,000.The corporation earned $11,000 ordinary income during the year.It has no accumulated E & P.Which statement is correct?

Several individuals acquire assets on behalf of Skip Corporation on May 28, purchased assets on June 3 and began business on June 11.They subscribe to shares of stock, file articles of incorporation for Skip, and become shareholders on June 21.The S election must be filed no later than two and one-half months after:

If any entity electing S status is currently a C corporation, NOL carryovers from prior years generally be used in an S corporation year.

Which item does not appear on Schedule K of Form 1120S?

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

An S election made before becoming a corporation is valid only beginning with the first 12-month tax year.

Which statement is incorrect with respect to an S shareholder's consent?

Which of the following, if any, can be eligible shareholders of an S corporation?

Nonseparately computed loss (increases, reduces) a S shareholder's stock basis.

Which corporation is eligible to make the S election?

Any distribution of cash or property by a corporation that does not exceed the balance of AAA with respect to S stock during a post-termination transition period of approximately one year is applied against and reduces the basis of the S stock.

The AAA begins with a zero balance on the first day of an S corporation's first tax year.

The exclusion of on the disposition of small business stock (is/is not) available for S stock.

In the case of a complete termination of an S corporation interest, a tax year may occur.

The exclusion of gain on disposition of small business stock is not available on disposition of S corporation stock.

There are no advantages for an S corporation to issue § 1244 stock.

If the beginning balance in OAA is zero and the following transactions occur, what is the ending OAA balance?