Helmut and Sergei Own All the Stock of Zappo Corporation

question 36

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 Helmut and Nils agree to file a short- period return and Sergei also agrees to the return
• D) Yes, if Sergei will also join in the election with Helmut and Nils

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Definitions:

Employers Liable

Pertains to the legal responsibility of employers for the actions of their employees and for providing a safe working environment.

National Labor Relations Act

A foundational statute in United States labor law that guarantees workers the right to form unions, engage in collective bargaining, and take collective action such as strikes.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence over each other. If one party is significantly stronger than the other, they are said to have greater bargaining power.

Organized

The state of being systematically arranged or structured, often referring to entities like groups or data that are orderly and coordinated.