Which of the following statements describes the same characteristic for both an S corporation and a C corporation?
A. Both corporations can have more than 100 shareholders.
B. Both corporations have the disadvantage of double taxation.
C. Shareholders can contribute property into a corporation without being taxed.
D. Shareholders can be either residents of the United States or foreign countries.
Answer: C. Shareholders can contribute property into a corporation without being taxed.
You might also like to view...
A tie decision by the U.S. Supreme Court sets a precedent for later cases
Indicate whether the statement is true or false
Refer to Additional Case 6.2. How could Terra Alta most likely prevent key, older workers from leaving?
Additional Case 6.2 Terra Alta employs nearly 15,000 workers worldwide. The firm wants to reduce its workforce through an early retirement program. The firm has hired you to organize and implement the program. Employees over age 58 are eligible, but managers don't want to lose key older employees. Program eligibility should be limited to a short period of time. Terra Alta managers need a fairly accurate estimate of how many employees will participate in the program. Terra Alta expects a legal and humane program that avoids litigation issues. Employees should have an accurate picture of their future if they decide to accept early retirement. A) Restricting eligibility to areas with redundant employees B) Establishing an immediate hiring freeze C) Lowering the eligibility requirements D) Shortening the eligibility time frame