1. Which is an advantage of electing to be taxed as an S corporation over a C corporation or a partnership are:

Select one:

a. S corporations are allowed to use any time period for the tax year (fiscal/calendar)

b.

The S corporation's losses are passed through to the shareholders.

c. S corporations can receive dividends and then use dividends-received deduction.

d. Which is an advantage of electing to be taxed as an S corporation over a C corporation or a partnership are: 2.

If Beach LLC has $ 80,000 of Profit and only one owner, how much would the owner save by becoming and S Corporation versus a sole proprietor? (Assuming as employee of S corporation his wages would be half of the profit).

Select one:

a. $12,240

b. $16,000

c. $6,120

d. $0 3.

The minimum tax credit available for a corporation's alternative minimum tax liability can be carried forward indefinitely and offsets regular tax liabilities in future years.

Select one:

True

False 4.

The personal holding company tax might be imposed

Select one:

A. if more than 50% of the company is owned by five or fewer individuals for the entire year.

B. on both partnerships and corporations.

C. on companies whose gross income arises solely from rentals, if the lessors render no services to the lessees.

D. on small business investment companies licensed by the Small Business Administration. 5.

If the taxpayer set up a LLC (Limited Liability Company) at the Secretary of State website, what type of return would be filed for tax purposes? Taxpayer owns a Bakery with her sister and they are employees of the LLC. They each own 50% of the LLC.

Select one:

a. Partnership

b. Sole Proprietorship

c. Limited Liability Company

d. S Corporation