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

question 1

Multiple Choice

If Annie and Andy (each a 30% shareholder in a calendar year S corporation) file a revocation statement on March 20, 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) March 18, 2018.
• C) January 1, 2019.
• D) March 16, 2019.
• E) None of the choices are correct.

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Definitions:

Recessions

Instances of provisional economic weakness where both trading and industrial activities fall off, universally determined by a two-quarter continuous drop in GDP.

General Merchandise

A category of goods that includes a wide range of products from apparel to home goods sold by retailers.

Discount Stores

are retail outlets that sell products at prices lower than those asked by traditional retail stores, often by selling in large volumes or foregoing some aspects of service.

Inflation

A broad escalation in prices coupled with a reduction in the purchasing power of currency.