Bellows Corporation, a Calendar-Year Taxpayer, Has Been an S Corporation

question 6

Essay

Bellows Corporation, a calendar-year taxpayer, has been an S corporation for ten years. Last year, John sold all the Bellows stock to Micky. Payments for the stock are to be made over a five-year period. In March of next year, Micky fails to make the necessary payments and John repossesses the stock. During the time Micky holds the stock, Bellows Corporation revokes its S election. Can Bellows Corporation reelect S status?

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Definitions:

Positive Statement

An objective statement that can be tested, based on factual information and data, without any value judgments.

Industrial Society

A society characterized by a reliance on mechanized labor to create material goods, often associated with a significant shift from agricultural to industrial economies.

Normative Question

A question that addresses what ought to be, focusing on subjective judgments or prescriptions about economic policies.

Normative Statement

A statement expressing a value judgment about what ought to be, rather than stating objective facts or describing what currently exists.