For Each of the Following Independent Cases Below, Indicate Whether

question 47

Essay

For each of the following independent cases below, indicate whether the entity will be taxed as an S corporation or a C corporation for the respective period.
a. Richard Corporation, uses the calendar year as its tax year. It files an S election on March 31, 2014. If no reasonable cause is shown, how will Richard be treated for tax purposes in 2014?
b. Shareholders owning more than 50% of the stock of Harper Corporation, a qualifying calendar-year S corporation, consent to a voluntary revocation statement filed by the corporation on March 12, 2014. How will Harper Corporation be treated for tax purposes in 2014?
c. Shareholders owning more than 50% of the stock of Hazelwood Corporation, a qualifying calendar-year S corporation, consent to a voluntary revocation statement filed by the corporation on March 12, 2014. The prospective termination date is July 1, 2014. How will Hazelwood Corporation be treated for tax purposes in 2014?
d. One of the shareholders of Omni Corporation, a calendar-year S corporation, sells his stock to a Canadian individual on July 8, 2014.

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Definitions:

Stomach

Tubular, muscular organ that functions in chemical and mechanical digestion.

Peristalsis

Wavelike smooth muscle contractions that propel food through the digestive tract.

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Digestive System

The digestive system is the group of organs responsible for breaking down food into nutrients, which the body uses for energy, growth, and cell repair.