1-what are the limitations on the number and type of shareholders an Corporation may have? how are these limitations different from restrictions on the number and type of shareholders C corporations or partnerships may have?

2- Karen is the sole shareholder of a calendar year end C corporation she formed last year. if she elects S corporation status this year on February 20, when will the electionbecome effective and why? what if she had made the election on March 20?

3- describe a situation in which a former C corporation that elected to be taxed as an S corporation may have its S election automatically terminated, but a similarly situated corporation that has always been taxed as an S corporation would not.

4- on June 1 year 1 jasper corporations S election was involuntarily terminated. what is the earliest jasper may be taxed as an S corporation again? are there any exceptions to the general rule? Explain .

5- why is shareholders basis in an S corporate stock adjusted annually?

6- how does a shareholdercreate debt basis in an S corporation? how is debt basis similar and dissimilar to stock basis?

7- when and S corporation shareholder has suspended losses due to the tax basis or at risk amount limitation, is he allowed to deduct the losses if the Corporation status is terminated? why or why not?

8 - how does the tax treatment of employee fringe benefits reflect the hybrid nature of the S corporation?

9- How do the tax consequences of S Corporation liquidating distributions differ from the tax consequences of S corporation operating distributions at both the corporate and shareholder levels?

10- is the LIFO recapture tax a C corporation tax or an S corporation tax? Explain.