If Annie and Andy (Each a 30% Shareholder in an Calendar

question 110

Multiple Choice

If Annie and Andy (each a 30% shareholder in an calendar year S corporation) file a revocation statement on February 10, 2017 to terminate their S corporation's S election, what is the effective date of the S corporation termination (assuming they do not specify one) ?

• A) February 10, 2017.
• B) January 1, 2018.
• C) February 10, 2018.
• D) January 1, 2017.
• E) None of the choices are correct.

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Definitions:

Informal

Pertaining to interactions or structures not officially sanctioned or established by formal rules and procedures.

Cohesive

Characterizing a group, team, or unit that works well together, showing unity and a strong sense of collective purpose.

Coordinating Efforts

The process of organizing and aligning the activities of different participants or groups to achieve a common goal.

Process Loss

The decrease in team or organizational efficiency that occurs due to issues in coordination or motivation.