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

question 20

Multiple Choice

If Annie and Andy (each a 30% shareholder in a calendar year S corporation) file a revocation statement on February 10, 2018 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) January 1, 2018.
• B) February 10, 2018.
• C) January 1, 2019.
• D) February 10, 2019.
• E) None of the choices are correct.

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Definitions:

Dividend

A distribution of a portion of a company's earnings decided by the board of directors to its shareholders.

Risk Aversion

A preference for avoiding risk, where individuals or entities prioritize certainty and are reluctant to engage in investments with uncertainty.

Expected Return

The anticipated value or profit from an investment over a given period of time.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock’s price changes.