Davies Corporation Is a Calendar- Year Taxpayer That Is Owned

question 63

Multiple Choice

Davies Corporation is a calendar- year taxpayer that is owned equally by Vivian, Rob, Danny, and Doug Davies. At the close of business on May 31, Rob Davies sells his 25% stock interest to Paula Bryan. Which of the following statements about the S election is correct?

• A) Paula has 30 days to terminate the S election, otherwise the election remains in place for the entire year and all subsequent years.
• B) Paula must consent to the S election, otherwise the election terminates at the close of business on May 31.
• C) A new S election form must be filed by June 30 of the same year, with all shareholders consenting to the election. If a new S election is not filed, the election terminates on June 30 of that year.
• D) None of the above statements are correct.

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Definitions:

Marketing Communications

Pertains to the methods and channels a company uses to convey messages about its products or services to its target audience.

Consumers

Individuals or organizations that use or consume goods and services produced within an economy, often considered the final users in the distribution chain of goods and services.

Exposures

The number of times potential customers come into contact with a marketing message or advertisement.

Encodes

The process of converting data into a particular form, often for the purpose of security, storage, or transmission efficiency.