17.What percentage of shareholders must consent to the S corporation election?

A.50%

B.67%

C.90%

D.100%

18.The income of an S corporation is taxed at the:

A.Corporate level at the corporate rates.

B.Corporate level at individual tax rates.

C.Individual level at corporate rates.

D.Individual level at individual tax rates.

19.All of these are factors the IRS considers to determine reasonable compensation EXCEPT:

A.Consistent amount of compensation year after year.

B.Duties and responsibilities of the shareholder-employees.

C.Training and experience of the shareholder-employees.

D.What comparable businesses pay for similar services

20.Health and accident insurance premiums paid on behalf of a greater than 2% S corporation shareholder-employee are deductions by the S corporation and reportable as:

A.A distribution on the shareholder-employee's Schedule K-1, reducing the shareholder's basis in the corporation.

B.A separately stated expense on the shareholder-employee's Schedule K-1.

C.Wages on the shareholder-employee's Form W-2, box 1, subject to income tax withholding.

D.Wages on the shareholder-employee's Form W-2, boxes 1, 3, and 5, subject to income and FICA withholding.