THE S CORPORATION RULES ARE LESS COMPLEX FOR S CORPORATIONS

THE S CORPORATION RULES ARE LESS COMPLEX FOR S CORPORATIONS THAT HAVE EARNINGS AND PROFITS FROM PRIOR C CORPORATION YEARS THAN FOR S CORPORATIONS THAT DO NOT HAVE EARNINGS AND PROFITS FROM PRIOR C CORPORATION YEARS?

Multiple choice

1. True

2. False

Solution

FALSE BECAUSE:- THE S CORPORATION RULES ARE MORE COMPLEX FOR S CORPORATIONS THAT HAVE EARNINGS AND PROFITS FROM PRIOR C CORPORATION YEARS THAN FOR S CORPORATIONS THAT DO NOT HAVE EARNINGS AND PROFITS FROM PRIOR C CORPORATION YEARS.