Krause Corporation Makes an S Election, Believing That It Has

question 4

Multiple Choice

Krause Corporation makes an S election, believing that it has no current or accumulated E&P. However, after an IRS audit, Krause is found to have failed the passive investment income test for three consecutive years and also to have a Subchapter C E&P balance from its three pre-election tax years. The IRS will

• A)automatically terminate the election and Krause cannot reelect for a 5-year time period.
• B)retroactively revoke the election to the first day on which it was effective and Krause will not be able to reelect.
• C)treat the error as such and allow the election to continue unbroken.
• D)likely treat the termination as inadvertent and will probably approve a continued S election if the corporation distributes the Subchapter C E&P.

Identify the role of discriminative stimuli in learning and behavior modification.

Comprehend the types and effects of reinforcement schedules on behavior.

Understand the implications of conditioning on fear and behavior suppression.

Realize the potential risks and outcomes of using physical punishment in behavior modification.

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Definitions:

Schedule

A structured plan that outlines the times at which certain tasks, events, or activities are intended to occur.

Underapplied Manufacturing Overhead

The condition in which the manufacturing overhead costs assigned are lower than the real overhead costs that have been incurred.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Debit

An entry recorded on the left side of an accounting ledger that increases an asset or expense account, or decreases a liability or equity account.