On June 30 of the Current Year, the S Election

question 5

Multiple Choice

On June 30 of the current year, the S election of Great Corporation is terminated, thus creating a six-month S short year and a six-month C short year. Great Corporation is a calendar-year taxpayer. The S short-year return is due

• A)September 15.
• B)December 15.
• C)March 15 of the next year.
• D)June 30 of the next year.

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Definitions:

Equivalent Amount

An equivalent amount refers to a value that has the same worth or value as another in a different form or denomination.

Money

A medium of exchange that is widely accepted in payment for goods and services and in settlement of debts.

Annually Compounded

Refers to the process of calculating and adding interest to a principal sum once per year.

Maturity Values

The amount payable to the holder of a financial instrument at its maturity date, often the principal plus interest.