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these are true/false! please help! 5. An S corporation issues two classes of common stock: class A voting and class B nonvoting stock. The rights

image text in transcribedthese are true/false! please help!
5. An S corporation issues two classes of common stock: class A voting and class B nonvoting stock. The rights of both classes of stock are identical except for voting rights. The S corporation election will not be valid because more than one class of stock is outstanding. 6 An S corporation has 300 shares of outstanding stock. K owns 250 shares and U owns 50 shares. On June 30 of this year, K sells 200 of his shares to M. M may cause revocation of the S corporation election. 7 Reasonable salaries paid to an S corporation's shareholders who are employees are deductible business expenses. (The business was incorporated January 1 of the current year.) In situations where a parent wants to involve minor children in the business, the general partnership form is probably preferable to the S corporate form. 8 9. Reasonable employee benefits provided by an S corporation for a shareholder who is an employee are deductible business expenses by the S corporation and are excluded from the income of the shareholders. (The business was incorporated January 1 of the current year.)

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