quiz 11E

quiz 11E - 1. (T/F) Since an S corporation may have only...

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1. (T/F)  Since an S corporation may have only one class of stock, it should make  equal distributions per share, regardless of whether any given share is voting or  nonvoting. Response: FALSE Answer: TRUE  Points: 0 / 1 2. (T/F)  A distribution from an S corporation to a shareholder may be dividend  income, even if the corporation has no earnings and profits. Response: FALSE Answer: FALSE  Points: 1 / 1 3. (T/F)  Since an S corporation generates no current earnings and profits, a  distribution to its shareholders may never be a dividend. Response: FALSE Answer: FALSE  Points: 1 / 1 4. (T/F)  An S corporation recognizes gains on the distribution of noncash property  to a shareholder. Response: TRUE Answer: TRUE  Points: 1 / 1 5. (T/F)  A distribution of cash or property from an S corporation that has no  accumulated earnings and profits is always tax-free to the recipient. Response: FALSE
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quiz 11E - 1. (T/F) Since an S corporation may have only...

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