Identify Which of the Following Statements Is True

question 62

Multiple Choice

Identify which of the following statements is true.

• A)Shareholders who acquire stock in an S corporation after the election date and prior to the election's effective date must consent to the election.
• B)S corporation consent by shareholders is binding on the current tax year and all future tax years.
• C)Only shareholders who own stock on the date an S election takes effect must consent to the election.
• D)All of the above are false.

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Definitions:

Codify

The process of collecting and systematizing laws, rules, or regulations into a single, coherent code.

Ethical Requirement

Standards of conduct based on moral principles that individuals or organizations are expected to follow.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior.

Financial Implications

Refers to the potential outcomes or impacts of business decisions or actions on a company's financial health or performance.