Question 1 20 pts For each of the following circumstances (Parts 1-5 (4 points each)) do both of the following where applicable: indicate how many shareholders there would be for the 100 shareholder limit (explain) explain 1) who the shareholder(s) is or are, and 2) how many shareholder consents must be filed in order to make a valid Selection. For any situation where the shareholder(s) doles) not qualify or if an Selection is not necessary, explain why in detail. Assume for each part the potential shareholder(s) in question has/have timely made any elections necessary to qualify as an S shareholder where such an election may be necessary. 1. Husband and wife who remain married the entire year are the sole owners of a valid S corporation 2. Harry is the sole grantor of the Callahan Family Trust. The Trust is a grantor trust for tax purposes and Harry is alive the entire year. The Callahan Family Trust is one of 20 s corporation shareholders. 3. Filch Company is a multi-member limited liability company (LLC) organized in the United States with 10 US citizen LLC members. Filch owns 25% of an corporation's stock the entire year. 4. Dobby, Inc. is a domestic corporation that has never made an Selection. For the entire year Dobby owns 80% of an S corporation's stock. 5. Albus, Inc. is a domestic corporation that has always held a valid Selection. For the entire year Albus owns 100% of a newly formed corporation's stock. Question 1 20 pts For each of the following circumstances (Parts 1-5 (4 points each)) do both of the following where applicable: indicate how many shareholders there would be for the 100 shareholder limit (explain) explain 1) who the shareholder(s) is or are, and 2) how many shareholder consents must be filed in order to make a valid Selection. For any situation where the shareholder(s) doles) not qualify or if an Selection is not necessary, explain why in detail. Assume for each part the potential shareholder(s) in question has/have timely made any elections necessary to qualify as an S shareholder where such an election may be necessary. 1. Husband and wife who remain married the entire year are the sole owners of a valid S corporation 2. Harry is the sole grantor of the Callahan Family Trust. The Trust is a grantor trust for tax purposes and Harry is alive the entire year. The Callahan Family Trust is one of 20 s corporation shareholders. 3. Filch Company is a multi-member limited liability company (LLC) organized in the United States with 10 US citizen LLC members. Filch owns 25% of an corporation's stock the entire year. 4. Dobby, Inc. is a domestic corporation that has never made an Selection. For the entire year Dobby owns 80% of an S corporation's stock. 5. Albus, Inc. is a domestic corporation that has always held a valid Selection. For the entire year Albus owns 100% of a newly formed corporation's stock
