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

question 47

Multiple Choice

If Annie and Andy (each a 30% shareholder in an calendar year S corporation) file a revocation statement on March 20,2017 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, 2017.
• B) March 18, 2017.
• C) January 1, 2018.
• D) March 16, 2018.
• E) None of the choices are correct.

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Definitions:

Valuation Techniques

Methods used to estimate the value of an asset, liability, or company, incorporating various financial models and approaches.

Non-recurring Measurements

Financial assessments that are unusual or infrequent and not expected to happen often in the future.

Corresponding Asset

An asset that is directly related or linked to another activity or transaction, often in financial reporting or accounting.

Provision For Warranties

An estimate of future costs related to repairing or replacing products under warranty, recognized as a liability on the balance sheet.