The Termination of an S Election Occurs on the Day

question 78

True/False

The termination of an S election occurs on the day after a corporation ceases to be a qualifying S corporation.

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Definitions:

Transfer Price

The price at which goods, services or intangible properties are traded between related entities within an organization.

Buying Division

A department within a company responsible for making purchases of goods and services needed by the organization.

Selling Division

A segment of a company specifically focused on sales and distribution of products or services.

Transfer Price

The price at which divisions of a company transact with each other, used for the transfer of goods and services within an organization.