Multiple Choice 10. A business is considered a small business corporation eligibilit the following except for S corporation y purposes if certain conditions are met. Those conditions include all of Must be an eligible domestic corporation b. a. Have income of $1 million or less c. Have only one class of stock outstanding d. Have no more than 100 eligible shareholders 11 Which one of the following qualifes as an eligible corporation for S corporation purposes? a. A foreign corporation b. A c. A life insurance company d. None of the above domestic corporation that owns 80 percent of another corporation 12 Stock of an S corporation may be owned by all of the following except An individual who is a resident alien of the United States a. b. An estate A domestic partnership c. d. A voting trust An S corporation election may be terminated if the corporation has excessive passive investment income. An example of what is not passive investment income is 13. a Dividends from a corporation of which the S corporation owns 50% of the stock b. Gross receipts from an annuity c. Rental income form a net lease d. Interest on notes not involving the sale of inventory e. Room rents paid to a hotel