Which of the following would not result in an S election termination?
A) Having 120 unrelated shareholders.
B) Having a C corporation as a shareholder.
C) Issuing a second class of stock.
D)Having excess passive investment income for two consecutive years.
E)None of these

Question

Quizplus · Accepted Answer

An S election can be terminated if the corporation has excess passive investment income for three consecutive years, not two.

Which of the Following Would Not Result in an S