Alligood Corporation has two classes of common stock outstanding. The Class A and Class B common stock give the shareholders identical rights and interests in the profits and assets of the corporation. Class A stock has one vote per share. Class B stock is nonvoting. Alligood Corporation may

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Quizplus · Accepted Answer

Alligood Corporation can make the S election at any time because having different voting rights does not constitute having two classes of stock for S corporation purposes. As long as the shares provide identical rights to profits and assets, they are considered one class of stock.

Alligood Corporation Has Two Classes of Common Stock Outstanding