Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)The natural business year for fiscal-year election purposes is any tax year that ends within six months after the peak period of business.
• B)Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
• C)A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
• D)All of the above are false.

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Definitions:

Hypertension

A medical condition characterized by consistently elevated blood pressure levels.

Creative

A trait relating to the ability to produce new and original ideas, approaches, and solutions.

Curious

Having a strong desire to know or learn something.

Laser Eye Surgery

A medical procedure that uses lasers to correct vision problems, such as myopia, hyperopia, and astigmatism.