Helmut and Sergei Own All the Stock of Zappo Corporation

question 41

Multiple Choice

Helmut and Sergei own all the stock of Zappo Corporation, a calendar-year domestic corporation. On January 30 of the current year, Sergei sells his entire interest in the Zappo stock to Nils. All three individuals are U.S. citizens. Can an S election be made for the current year?

• A)not for the current year but for the next year
• B)Yes, if Helmut and Nils agree to report all of the corporation's income for the entire year
• C)Yes, if Sergei will also join in the election with Helmut and Nils
• D)Yes, if Helmut and Nils agree to file a short-period return and Sergei also agrees to the return

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Definitions:

Cultural

Pertaining to the customs, arts, social institutions, and achievements of a particular nation, people, or other social group.

Contextual

Related to, dependent on, or being the context of a situation or event which influences its meaning or effect.

Biological

Relating to biology; pertaining to the science of life or living organisms.

Psychological

Pertaining to the mind or mental processes, often involving emotional and cognitive functions.