quiz 11D

quiz 11D - 11d 1. (T/F) Shareholders in an S corporation...

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11d 1. (T/F)  Shareholders in an S corporation include their allocable portions of  corporate liabilities to outside creditors as part of their basis in the corporation. Response: TRUE Answer: FALSE  Points: 0 / 1 2. (T/F)  An S corporation pays health insurance premiums on behalf of its sole  shareholder. The corporation is permitted to deduct the cost of the premiums. Response: TRUE Answer: TRUE  Points: 1 / 1 3. (T/F)  An S corporation pays no salary to its sole shareholder, who works full time  for the corporation. The IRS views this as a legitimate strategy for the corporation  to avoid payroll and withholding taxes. Response: TRUE Answer: FALSE  Points: 0 / 1 4. (T/F)  An S corporation pays health insurance premiums on behalf of its sole  shareholder. The shareholder may be permitted to deduct the cost of the  premiums as a self-employed person. Response: TRUE
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This note was uploaded on 06/23/2009 for the course BUPA 539 taught by Professor Jamison during the Spring '09 term at IUPUI.

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quiz 11D - 11d 1. (T/F) Shareholders in an S corporation...

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