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

question 66

Multiple Choice

If Annie and Andy (each a 30% shareholder in an calendar year S corporation) file a revocation statement on February 10,2017 to terminate their S corporation's S election,what is the effective date of the S corporation termination (assuming they do not specify one) ?


Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output, indicating the variable cost per unit of output.

Marginal Cost

The hike in production costs when an additional unit of a good or service is manufactured.

Market Price

The existing selling or buying price for a service or asset in a particular trading environment.

Economic Profit

The total revenue of a business minus its total costs, including both explicit and implicit costs.

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