I am working on extensive report for my Advanced Corp. Tax class and I am hoping to get a better understanding of the following:

-In order for a corporation to make a valid S election, the corporation must be a small business corporation. Explain the meaning of small business corporation in this context.

-Explain what separately stated items are in regards to Partnerships and S corporations? Give an example of separately stated items for each type of entity.

-What requirements must be met in order for a corporation to make an effective S election?

-Why is depreciation listed twice on Schedule M-1 of an S corporation tax return? (once on line 3 and once on line 6)

-In the S corporation context, what do the acronyms AAA and OAA stand for? Explain the purpose of both accounts.

-A client of yours is curious as to why a Form 1120-S has a section at the bottom of the first page where tax is calculated. The client understands that an S corporation is a pass-through entity, so the client asks you, Why is there a tax calculation section at the bottom of the first page of the Form 1120-S? Please respond to your client.

-Compare and contrast S corporations and LLCs. Be as specific and provide as much detail as possible.