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Unformatted text preview: a.
Choice "c" is correct. 5 years.
Rule: After a corporation's status as an S corporation is revoked or terminated, the corporation is required
to wait 5 years before making a new S election, in the absence of IRS consent to an earlier election.
Choices "a", "b", and "d" are incorrect, per the above rule. CPA-02265 Type1 M/C 131. CPA-02265 A-D Nov 91 II #57 Corr Ans: D PM#37 R 3-99 Page 46 A corporation that has been an S corporation from its inception may: a.
d. Have both passive
and nonpassive income
Yes Be owned by a
Choice "d" is correct.
Rule: 1. A corporation that has always been an S corporation may have both "passive income" and "non
2. Shareholders of an S corporation must be: individuals, estates, a voting trust, a grantor trust,
and/or a bankruptcy estate.
Choices "a", &q...
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- Fall '10
- The Land