A shareholder's share of ordinary income from the S corporation's trade or business activities is reportable as self-employment income on the shareholders personal federal income tax return.

		a. true
		b. false

If a corporation elects S Corp. status on February 1, 2022 for the tax year beginning on January 1, 2022, consent to the election must be obtained from all former shareholders who held the stock during January 2022.

		a. true
		b. false

Assume that Aaron and Wendy (husband and wife) jointly own shares of an S corporation. They are considered a single shareholder for purpose of testing for the number of shareholders limitation.

		a. true
		b. false

A cash distribution may reduce the recipient partner's basis in his partnership interest below zero.

		a. true
		b. false

Distributions made to S corporation owners are nontaxable to the extent of the owners stock and debt basis.

		a. true.
		b. false

The outside basis is defined as a partners basis in the partnership interest.

		a. true
		b. false