Ch. 22 #1,3,5,8,9,11,15 Tim Lee

1. S corporations are treated much like partnerships, except that S corporations amortize orga-

nizational expenditures under the C corp rules and must recognize gains but no losses on dis-

tributions of appreciated property to shareholders. For partnerships, certain deductions of in-

dividuals are not permitted.

3. The net operating loss can be passed through directly to the shareholders. A shareholder can

deduct an NOL for the year in which the S corp’s tax year ends

5. A, B, C

8. Partnerships cannot own stock in a small business corporation. His plan will not work.

9. D, a one-person LLC

11. A, D, C (only some)

15.

A. Yes

B. Yes

C. Yes

D. Yes

E. Ni