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) ?

• A) January 1, 2017.
• B) February 10, 2017.
• C) January 1, 2018.
• D) February 10, 2018.
• E) None of the choices are correct.

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Definitions:

Market System

A system where economic decisions, such as pricing and investment, are determined by supply and demand.

Regulatory Mechanism

A system or process designed to control or govern conduct, often within industries or sectors, through guidelines or rules.

Laissez-faire Capitalism

An economic system characterized by minimal government intervention and the free operation of market forces.

Minimal Government Intervention

Minimal government intervention refers to a political and economic philosophy that advocates for the government to interfere as little as possible in the economic decisions of individuals and businesses.