Prior to the end of its tax year, the shareholders of an S corporation either make additional capital contributions or advance funds in the form of loans. Could this shareholder activity be motivated by income tax considerations? Explain.

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The Answer of Prior to the end of its tax year, the shareholders of an S corporation either make additional capital contributions or advance funds in the form of loans. Could this shareholder activity be motivated by income tax considerations? Explain.

Prior to the End of Its Tax Year, the Shareholders