1. An S corporation may be subject to which tax below?

a. Corporate income tax ( 11).

b. Built-in gains tax.

c. Alternative minimum tax (corporate).

d. An S corporation is subject to all the taxes listed above.

2. What method is used to allocate S corporation income or losses (unless an election is made to treat it differently)?

a. Any method agreed to by all of the shareholders.

b. Per-day allocation.

c. FIFO method.

d. LIFO method.

3. Which of the following is not a separately stated item of an S Corporation?

a. Tax-exempt interest income.

b. Long term capital gain.

c. Distributions to shareholders.

d. Depreciation recapture income.