Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)The natural business year for fiscal-year election purposes is any tax year that ends within six months after the peak period of business.
• B)Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
• C)A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
• D)All of the above are false.

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Definitions:

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on the buyer's willingness to pay.

Low-value Group

A segment of the market or customer base that generates relatively low revenue or profit for a business, often targeted differently in marketing or pricing strategies.

Arbitrage

The simultaneous purchase and sale of an asset in different markets to profit from price differences.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based on their willingness to pay.