Identify which of the following statements is true.
A)A corporation is a separate taxpaying entity that must file a tax return annually.
B)A newly formed corporation must select its basic accounting method.
C)The terms "regular corporation" and "C corporation" are synonymous.
D)All of the above are true.

Question

Quizplus · Accepted Answer

All the statements provided are true. A corporation is indeed a separate taxpaying entity that files its own tax returns. Upon formation, a corporation must select its accounting method (cash or accrual, for example). Lastly, the terms "regular corporation" and "C corporation" are used interchangeably to describe a corporation that is taxed separately from its owners under subchapter C of the Internal Revenue Code.

Identify Which of the Following Statements Is True