Lopez Corporation, an Existing C Corporation, Wants to Make an S

question 72

Multiple Choice

Lopez Corporation, an existing C corporation, wants to make an S election. If it has a June 30 year end, by what date must it make its election to be effective as of July 1, 2018?

• A) March 15, 2018
• B) June 30, 2018
• C) September 15, 2018
• D) December 30, 2018

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Definitions:

Purchase Returns

Goods returned by the buyer to the seller due to defects, excess supply, or other reasons.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Contra Revenue Account

An account used to record reductions in gross revenue, such as discounts, returns, and allowances.