1)The shareholders of a corporation will receive both voting common stock and nonvoting preferred stock. Will this affect an S election? Why or why not?

2) The shareholders of a corporation will receive both voting common stock and nonvoting common stock. Will this affect an S election? Why or why not?

3) The shareholders of a corporation will receive both voting common stock and voting preferred stock. Will this affect an S election? Why or why not?

4) The shareholders of a corporation will receive voting common stock. One shareholder will lend $350,000 to the corporation and receive a promissory note due in 15 years, with interest payable annually at prime plus 1. Will this affect an S election? Why or why not? Cite a specific Code section for your rationale.

5) What if the promissory note in supra is subordinated to all third party creditors, including trade creditors? Cite a specific Code section for your rationale.