Multiple Choice
Identify which of the following statements is true.
A) An S corporation should have a buy-sell agreement to guard itself against an ill-advised sale of its stock.
B) The terms "small business corporation" and "S corporation" are synonymous.
C) A regular corporation has common and preferred stock outstanding on January 1. On January 2, the preferred stock is canceled in a recapitalization, leaving only common stock outstanding. The corporation can make an S election for this tax year.
D) All of the above are false.
Correct Answer:
Verified
Correct Answer:
Verified
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