Question
One of your clients is considering electing S status. Texas, Inc., is a six- year-old company with two equal shareholders, both of whom paid $30,000
One of your clients is considering electing S status. Texas, Inc., is a six- year-old company with two equal shareholders, both of whom paid $30,000 for their stock. Going into 2016, Texas has a $110,000 NOL carryforward from prior years. Estimated income is $40,000 for 2016 and $25,000 for each of the next three years. Should Texas make an S election for 2016? Why or why not?
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Financial Accounting For Decision Makers
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
5th Edition
1405888210, 9781405888219
