ACCT 424 Chapter 12 question on midterms

ACCT 424 Chapter 12 question on midterms - Chapter 12...

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Chapter 12 question on midterms 1. Question: (TCO 8) Which, if any, of the following can be eligible shareholders of an S corporation? Your Answer: A resident alien. CORRECT Partnership. A foreign  corporation. A nonqualifying trust. None of the above  can own stock. Instructor Explanation: Points Received: 4 of 4 Comments: 2. Question: (TCO 8) An S corporation must possess the following characteristics. Your Answer: Points Received: 4 of 4 Comments: 3. Question:
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(TCO 8) Which corporation is eligible to make the S election? Your Answer: Points Received: 4 of 4 Comments: 4. Question: (TCO 8) Which, if any, of the following items  decreases  an S corporation’s AAA? Your Answer: Instructor Explanation: Options b. and d. have no effect on AAA, and option c. increases AAA.   Points Received: 4 of 4 Comments: 5. Question: (TCO 8) During 20x2, Houston Nutt, the sole shareholder of a calendar year S corporation, received a  distribution of $16,000.  On December 31, 20x1, his stock basis was $4,000.  The corporation earned 
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