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

question 1

Multiple Choice

If Annie and Andy (each a 30% shareholder in a calendar year S corporation) file a revocation statement on March 20, 2018 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, 2018.
• B) March 18, 2018.
• C) January 1, 2019.
• D) March 16, 2019.
• E) None of the choices are correct.

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Definitions:

Major Consequence

A significant outcome or result that follows an action, decision, or event, often having long-lasting effects.

Work Habits

A person’s characteristic approach to work, including such things as organization, priority setting, and handling of paperwork, e-mail, and intranets.

Preoccupied

Being absorbed in thought or engrossed in an activity to the extent of becoming unaware of one’s surroundings.

Unfinished Tasks

Tasks that have been started but not completed, often causing a mental or emotional burden due to the pending work that remains to be done.