D Question 76 4 pts Fred and Wilma own Flintstone Farms Inc. as family farm corp

Question

D Question 76 4 pts Fred and Wilma own Flintstone Farms Inc. as family farm corporation shareholders. Wilma also is a tenant in common with her brothers and sisters in Rubble Ranch. If creditors of Flintstone Farms Inc. get a judgment against Fred and Wilma, they can foreclose on Wilma's interest in Rubble Ranch to satisfy their judgment (if necessary) against Flintstone Farms. O True O False Question 77 2 pts A shareholder in a family farm corporation could become liable for corporate debts if corporate- owned vehicles are used for personal purposes and the corporation is not reimbursed for that personal use True False DQuestion 78 4 pts Subchapter S corporations are subject to fewer legal requirements in Nebraska than Supchapter C corporations True False

Explanation / Answer

Answer:

76.False

Explanation:

Both Fred and Wilma are responsible to the creditors and they cannot foreclose the Wilma's Rubble Ranch without the willingness of Wilma.Wilma is a common tenant so she cannot foreclose wothout asking her brothers and sisters

77.True

Explanation:

Shareholders are responsible for corporations liabilities and they should not use the corporations vehicles for their personal purpose

78.True

Explanation:

When a corporation is originally chartered by Nebraska, it exists as a C Corporation. If you do nothing more after forming your Nebraska corporation, it will remain a C Corporation.Nebraska Corporation becomes an S Corporation only when, with the consent of all shareholders, special tax treatment is sought by filing Form 2553 with the IRS in accordance with Subchapter S of the Internal Revenue Code.So all these legal requirements are needed for Subchapter S corporations

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