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Unformatted text preview: uot;b", and "c" are incorrect, per the above rule.
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 CPA-02270 Type1 M/C 132. CPA-02270 A-D Corr Ans: C May 92 L #15 PM#38 R 3-99 Page 46 Assuming all other requirements are met, a corporation may elect to be treated as an S corporation under
the Internal Revenue Code if it has:
d. Both common and preferred stockholders.
A partnership as a stockholder.
One hundred or fewer stockholders.
The consent of a majority of the stockholders. CPA-02270
Choice "c" is correct. A qualifying S corporation can have no more that 100 shareholders for purposes of
this limitation. A husband and wife are counted as a single shareholder without regard to how they hold
Choice "a" is incorrect. A qualifying S corporation may not have more than one class of stock issued and
Choice "b" is incorrect. All shareholders must be individua...
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