Doug, Kate, and Gabe Own Refiner Group, Inc

question 55

Multiple Choice

Doug, Kate, and Gabe own Refiner Group, Inc., an electing S corporation. The shareholder's ownership percentages and fiscal year ends follow: Ownership Year End Doug 60% January 31 Kate 20% May 31 Gabe 15% September 30 Which of the following statements is are) correct? I. Refiner Group, Inc. must use a calendar year. II. Refiner Group, Inc. may elect to use a fiscal year ending January 31.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements are correct.
• D) Neither statement is correct.

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Definitions:

Government Program

refers to an official initiative or project established and funded by a government to achieve specific goals or provide certain services to its citizens.

Land Under Cultivation

Land that is actively used for the production of crops and agricultural goods.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.