To Make an S Election Effective as of the Beginning

question 108

True/False

To make an S election effective as of the beginning of the current year, an S corporation must file IRS Form 2553 within three and a half months after the beginning of the year.

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Definitions:

Limit Order Book

A record of all the open buy and sell orders for a particular security at various prices.

Russell 2000 Index

An equity index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, commonly used as a benchmark for small-cap U.S. stocks.

S&P 500 Index

A stock market indicator in the United States comprising 500 major corporations listed on the NYSE or NASDAQ, based on their market capitalization.

Rate of Return

The upward or downward movement in the value of an investment over a certain period, measured as a percentage of the cost at the beginning.