1.Which statement is incorrect with respect to the number-of-shareholders test in filing an S election?
a.Husband Jaime and wife Maria count as one shareholder.
b.Husband Jaime and the estate of wife Maria count as one shareholder.
c.Grandmother Adela and granddaughter Maria count as one shareholder.
d.Husband Jaime and ex-wife Isabel count as one shareholder.
e.All of these statements are correct.
2.Which item is not included in an S corporation's nonseparately computed income?
a.Net sales.
b.Dividends received.
c.Depreciation recapture.
d.Cost of goods sold.
e.All of these choices are included in non-separately computed income.
3.Which of the following, if any, can be eligible shareholders of an S corporation?
a.A Roth IRA.
b.A partnership.
c.A non-U.S. corporation.
d.A nonqualifying trust.
e.None of these choices are correct.
ANSWER:
OPTION e: All of these statements are correct.
EXPLANATION:
All the given options are correct with respect to counting as one shareholder.
1.Which statement is incorrect with respect to the number-of-shareholders test in filing an S election? a.Husband...