J D Formed Clampett, Inc

question 11

Multiple Choice

J. D. formed Clampett, Inc. as a C corporation (calendar tax year) with J. D., Granny, and Jethro, Inc. (a C corporation) as shareholders. On January 15, 2018, Jethro, Inc. sold all its shares to Jane Hathaway. On February 28, 2018, Clampett, Inc. filed an S corporation election, with J. D., Granny, and Jane all consenting to the election. What is the earliest effective date of the S election? 

• A) January 1, 2018.
• B) January 1, 2019.
• C) January 1, 2020.
• D) February 28, 2019.
• E) Never.

Recognize the significance of education and specific coursework in the success of new business owners.

Identify the stages of the start-up process model and the requirements at each stage.

Distinguish between environmental factors and personal or internal factors affecting small businesses.

Analyze the role of personal characteristics in successful entrepreneurship.

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Definitions:

Gain Or Loss

The financial result when the selling price of an asset differs from its cost, resulting in either profit (gain) or deficit (loss).

Original Cost

The initial purchase price or investment made to acquire an asset, not accounting for depreciation or amortization.

Asset Improvements

Expenditures made to increase the usefulness or value of a fixed asset.

Ordinary Maintenance

Routine and regular upkeep activities required to maintain or preserve assets in their original condition, preventing deterioration over time.