[calicpa]

Which one of the following statements concerning the eligibility requirements for S corporations is not correct?

A partnership is not permitted to be a shareholder of an S corporation.

An S corporation is permitted to own 75% of the stock of another S corporation.

An S corporation is permitted to be a partner in a partnership.

An S corporation is permitted to own 100% of the stock of a C corporation.

Why is the answer B? Isn’t S corp allowed to own 75%?

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[Only Reg Left]

S corps are allowed to have wholly owned S corp subsidiaries, ie own 100% of another S corp's stock and file one return together.

It's 100% or nothing.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[Only Reg Left]

S corps are allowed to have wholly owned S corp subsidiaries, ie own 100% of another S corp's stock and file one return together.

It's 100% or nothing.

AUD - 68, 77
REG - 84* (Expired)
FAR - 83
BEC - 74, 74, 72, 72, 84

[calicpa]

awesome thanks. i only have REG left too!!!!!

i got the exact same passing scores as you did for BEC, FAR, and AUD. crazy

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[calicpa]

awesome thanks. i only have REG left too!!!!!

i got the exact same passing scores as you did for BEC, FAR, and AUD. crazy

BEC - 84, 4/6/13
AUD - 77, 5/28/13
REG - 83, 4/12/14
FAR - 83, 10/3/13

Ethics - 90% 4/24/13

150 unit education requirement met!
Work experience met!

[Kimboroni]

Except for the above exception, corporations (c or s) can't be shareholders of an s corp.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Kimboroni]

Except for the above exception, corporations (c or s) can't be shareholders of an s corp.

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Author]

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