1. Which of the following statements is incorrect?

2. Identify a disadvantage of being an S corporation.

3. The maximum number of actual shareholders in an S corporation is:

4. Which item has no effect on an S corporation? AAA?

a. The number of owners of an LLC is not limited. b. If the LLC has three or more corporate characteristics, it will be taxed as a C corporation. c. An LLC can elect to be taxed as a C corporation or as a partnership. d. Only a. and c. e. a., b., and c. are incorrect. Estates can be shareholders. b. Losses flow through immediately to the shareholders. The AMT on corporations is avoided. d. Tax-exempt income flows through as excludible to shareholders. e. None of the above is a disadvantage of the S election. 75. b. 100. . 200. d. Some other number. e. Indeterminable. 9F a. Stock purchase by a shareholder. b. Interest expense. Cost of goods sold. d. Capital loss.