Suppose a Calendar-Year C Corporation, NewCorp, Incorporated, Was Formed on January

question 52

Multiple Choice

Suppose a calendar-year C corporation, NewCorp, Incorporated, was formed on January 1, 2020, and all of the shareholders (Hassell, Richie Cunningham, and Arnold's, Incorporated, a C corporation) filed a Form 2553 to elect S corporation status on April 14, 2020 When is the S election effective?

• A)January 1, 2020
• B)April 14, 2020
• C)January 1, 2021
• D)April 14, 2021
• E)Never.

---

Definitions:

Long-Run Equilibrium

A state in economics where all factors of production and outputs are fully optimized, with no external pressures causing shifts.

Long-Run Aggregate Supply

The total supply of goods and services that an economy can produce when it is using all of its resources efficiently and sustainably.

Actual Price Level

The current market price of goods and services, reflecting the true purchasing power of money at a given time.

Raw Materials

Basic materials from which products are made, typically extracted from natural resources.