4) Identify which of the following statements is true.

A) The S corporation rules were enacted to allow small corporations to enjoy the nontax advantages of the corporate form of business without being subject to the tax disadvantage of double taxation.

B) A partnership can elect to be taxed as a corporation under the check-the-box regulations. As a corporation, an S election can be made.

C) For C corporations that desire to be taxed like a partnership, the S corporation rules provide a practical alternative for an existing C corporation to obtain many of the tax benefits of being taxed as a partnership.

D) All of the above are true.

5) Identify which of the following statements is true.

A) A partnership can be an S corporation shareholder.

B) A nonresident alien can be an S corporation shareholder.

C) An S corporation can have more than 100 individual shareholders, since families are treated as a single shareholder.

D) All of the above are false.

8) Identify which of the following statements is true.

A) The overall S corporation loss limitation equals the shareholder's adjusted basis for his/her S corporation stock plus his/her ratable share of all S corporation liabilities.

B) The loss pass-throughs from an S corporation may produce a net operating loss for the shareholder.

C) An S corporation shareholder can increase the adjusted basis of his/her stock by any indebtedness owed the shareholder by the S corporation.

D) All of the above are false.