Soru
An S corporation has stock that is widely held and available for sale to the general public. True False
Çözüm
4.6
(205 Oylar)
Ural
Usta · 5 yıl öğretmeni
Uzman doğrulaması
Cevap
False
Daha Fazla
## Step 1An S corporation is a special type of corporation that is designed to avoid the double taxation drawback of C corporations. S corporations pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes. Shareholders report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates.## Step 2However, S corporations are subject to several restrictions. One of these restrictions is that they cannot have more than 100 shareholders. ## Step 3Another restriction is that S corporations cannot have corporate shareholders, which means they cannot be publicly traded. ## Step 4Given these restrictions, the statement that an S corporation has stock that is widely held and available for sale to the general public is false.