Business Entity

11. Y corporation's shareholders want to elect S status. Under which option below will they not be able to do so: a. Y corporation has a wholly owned subsidiary. b.Y corporation has 99 shareholders who own their shares solely in their own name and a married couple who own the stock jointly. It has 10 owners of voting common stock and 5 owners of nonvoting common. Except for voting, all other rights of the two sets of common stock are identical. c. d. A corporation was formed many years ago by X and Y. X and Y are unrelated. Several generations later there are 200 shareholders, 101 of whom are descendants of either X or Y. 12. Which of the following may be directly affected by the presence of absence of an S corporation's accumulated earnings and profits from C corporation years? a. The built-in gains tax b. The passive investment income tax c. The LIFO recapture tax d. The maximum number of shareholders permitted