Cpa 02277 explanation choice a is correct darts s

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Unformatted text preview: uot;b", and "c" are incorrect, per the above rule. 65 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection 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: a. b. c. 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 Explanation 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 their shares. Choice "a" is incorrect. A qualifying S corporation may not have more than one class of stock issued and outstanding. Choice "b" is incorrect. All shareholders must be individua...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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