1237. CHAPTER 12—S CORPORATIONS Question TF #1 The alternative minimum tax may apply to an S corporation. a. True b. False 1238. CHAPTER 12—S CORPORATIONS Question TF #2 The alternative minimum tax does not apply to an S corporation. a. True b. False 1239. CHAPTER 12—S CORPORATIONS Question TF #3 Liabilities affect owners’ basis differently between a partnership and an S corporation. a. True b. False 1240. CHAPTER 12—S CORPORATIONS Question TF #4 An S election allows shareholders to realize tax benefits from losses immediately. a. True b. False 1241. CHAPTER 12—S CORPORATIONS Question TF #5 An NOL from a Subchapter C year can be used to offset operating income in an S corporation year. a. True b. False 1242. CHAPTER 12—S CORPORATIONS Question TF #6 An estate can be an S corporation shareholder. a. True b. False 1243. CHAPTER 12—S CORPORATIONS Question TF #7 A maximum dollar sales limitation applies to an S corporation. a. True b. False 1244. CHAPTER 12—S CORPORATIONS Question TF #8 Differences in distribution or liquidation rights among shareholders do not create a second class of stock. a. True b. False 1245. CHAPTER 12—S CORPORATIONS Question TF #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. a. True b. False 1246. CHAPTER 12—S CORPORATIONS Question TF #10 A widower and his spouse’s estate are treated as one shareholder. a. True b. False 1247. CHAPTER 12—S CORPORATIONS Question TF #11 A former spouse is treated as being in the same family as the individual to whom he or she was married. a. True b. False 1248. CHAPTER 12—S CORPORATIONS Question TF #12 A limited liability company can own S corporation stock. a. True b. False 1249. CHAPTER 12—S CORPORATIONS Question TF #13 An S corporation can be a partner in a partnership. a. True b. False 1250. CHAPTER 12—S CORPORATIONS Question TF #14 Most Roth IRAs can own S corporation stock. a. True b. False 1251. CHAPTER 12—S CORPORATIONS Question TF #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. a. True b. False
