Question

Vassy, Inc., a calendar-year C corporation, filed a proper S corporation election on February 15, 20X4....

Vassy, Inc., a calendar-year C corporation, filed a proper S corporation election on February 15, 20X4. Then it filed a revocation on March 15, 20X4. As a result, which of the following statements is true regarding Vassy, Inc.? A. It will be an S corporation for 2014 only. B. It will be an S corporation for one month during 2014. C. It will be an S corporation from January 1, 2014, through February 15, 2014. D. It will not be an S corporation for 2014.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer is option “d” - It will not be an S corporation for 2014.

In this case the revocation has been filed on March 15th 2014. As per law if IRS receives the termination letter on or prior to 15th day of the 3rd month of the corporation’s tax year then the revocation will be effective at the beginning of the corporation’s current tax year.

Here the filing was done on the 15th day of March (which is the 3rd month) and so revocation will be for the entire year.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
King Corporation, a cash method taxpayer that uses the calendar year as its tax year, was...
King Corporation, a cash method taxpayer that uses the calendar year as its tax year, was incorporated on June 1, 1984. The corporation made its initial S election on December 1 of last year, effective for the current tax year. Earnings and profits of $60,000 have been retained from C corporation tax years. Which one of the following events results in the recognition of a built-in gain? Group of answer choices None of the above are built-in gains. collection of...
7)  Using the information below, calculate Party Time Inc.'s total cash receipts for January, February, and March....
7)  Using the information below, calculate Party Time Inc.'s total cash receipts for January, February, and March. Of the 11,000 “Pirate Treasure Chests” (party favor boxes) expected to be sold in Q1, 3,000 boxes are expected to be sold in January, 3,500 in February, and 4,500 in March. Each box sells for $5.50, as reflected in the Sales Budget for the year. Sixty percent of the Party Time Inc.’s sales are credit sales. Of the credit sales, 52 percent is collected...
Last year, Miley decided to terminate the S corporation election of her solely owned corporation on...
Last year, Miley decided to terminate the S corporation election of her solely owned corporation on October 17, 2016 (effective immediately), in preparation for taking it public. At the time of the election, the corporation had an accumulated adjustments account balance of $150,000 and $450,000 of accumulated E&P from prior C corporation years, and Miley had a basis in her S corporation stock of $135,000. During 2017, Miley’s corporation reported $0 taxable income or loss. Also, during 2017 the corporation...
Lockhart Corporation is a calendar-year corporation. At the beginning of 2013, its election to be taxed...
Lockhart Corporation is a calendar-year corporation. At the beginning of 2013, its election to be taxed as an S corporation became effective. Lockhart Corp.'s balance sheet at the end of 2012 reflected the following assets (it did not have any earnings and profits from its prior years as a C corporation): Asset Adjusted Basis FMV Cash $35,000 $35,000 Accounts receivable ?25,000 ?25,000 Inventory 180,000 ?210,000 Land ?125,000 ?120,000 Totals $365,000 $390,000 Lockhart's business income for the year was $65,000 (this...
Boots, Inc. is a “C” corporation engaged in the show manufacturing business. Boots is a Calendar...
Boots, Inc. is a “C” corporation engaged in the show manufacturing business. Boots is a Calendar year, accrual method taxpayer with two equal shareholders, Emil and Betty, who are unrelated cash method taxpayers. In answering the questions below, assume for convenience that Emil and Betty each are taxable at a combined federal and state flat rate of 40% on ordinary income and combined flat rate of 20% on qualified dividends and long-term capital gains. During the current year, Boots has...
A calendar year C corporation has a $39000 NOL in 2009, but elects S status for...
A calendar year C corporation has a $39000 NOL in 2009, but elects S status for 2010 and generates an NOL of $30000 in 2010. At all times during 2010, the stock of the corporation was owned by the same 10 shareholders, each of whom owned 10% of the stock. Kris, one of the 10 shareholders, has an adjusted stock basis of $2300 at the beginning of 2010. What amount of the loss, if any, is deductible by Kris in...
TCO (F) Sara Inc. is a calendar-year S corporation with four shareholders who each own 25...
TCO (F) Sara Inc. is a calendar-year S corporation with four shareholders who each own 25 shares of stock. All shareholders purchased their stock for $5,000. Mr. D, one of the shareholders, made loans to the corporation of $7,000 and $6,000 on August 1, 2016, and June 15, 2017, respectively. Mr. D also guaranteed Sara’s $20,000 bank loan of $20,000. Sara Inc. had $9,000 ordinary income on December 31, 2016. Both shareholders reported their share of the corporation's income on...
As of January 1, Kirk owned all 300 shares of Cork, Inc., a calendar year S...
As of January 1, Kirk owned all 300 shares of Cork, Inc., a calendar year S corporation. On September 1, (243 days after January 1), Kirk sold 50 shares each to Steve and Moe and kept the remaining 200 shares for himself. For the tax year, Cork reported nonseparately computed income of $109,500 and made no distributions to its shareholders. What amount of nonseparately stated income from Cork should Kirk report on this year’s Federal income tax return? a. $109,500...
Individual A ("A"), Individual B ("B"), both calendar year taxpayers, and Corporation C ("C") with a...
Individual A ("A"), Individual B ("B"), both calendar year taxpayers, and Corporation C ("C") with a fiscal year end June 30, form Partnership P ("P") on January 1 of Year 1. P manufactured widgets and is not a passive activity.   A contributes $300,000 cash in exchange for a 30% ownership interest (profits and capital), B contributes property with a fair market value ("FMV") of $400,000 and adjusted basis of $110,000, but subject to a non-recourse mortgage of $100,000 (which is...
Individual A ("A"), Individual B ("B"), both calendar year taxpayers, and Corporation C ("C") with a...
Individual A ("A"), Individual B ("B"), both calendar year taxpayers, and Corporation C ("C") with a fiscal year end June 30, form Partnership P ("P") on January 1 of Year 1. P manufactured widgets and is not a passive activity. A contributes $300,000 cash in exchange for a 30% ownership interest (profits and capital), B contributes property with a fair market value ("FMV") of $400,000 and adjusted basis of $110,000, but subject to a non-recourse mortgage of $100,000 (which is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT