Question 1 of 105. Which of the following statements regarding C corporations is

Question

Question 1 of 105. Which of the following statements regarding C corporations is FALSE? corporations are generally not subject to corporate income tax. O C corporations are separate entities for tax purposes. O Shareholders of a C corporation have limited liability. O Sharehold ers of a C corporation are taxed only when the corporation distributes earnings and profits. Mark for follow up Question 2 of 105. Why is the election for S corporation status attractive? O S corporations have a simplified tax return. S corporations are easier to organize O An S corporation has the legal benefits of a corporation and the tax benefits of a partnership. O An S corporation has an additional 30 days to file its tax return.

Explanation / Answer

Question no:1 Which of the following statements regarding C corporations is false Answer is Option :(1) C corporations are generally Not subjected to corporate income tax C corporatios are treated as separate entities for Tax purposes. C corporation Liable tax at the rate specified on the Reported income after claiming Deductions Question no:2 Answer is Option :(3) An S corporation has the leagl benefits of a corporation and tax benefits of a partnership taxation of S corporation is as the same as Partnerships , Income of S corporation is taxed at the Share holder level. It not taxed at corporate level. Income and deduction of S corporation flow from to the share holder level whether distributed or not

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