Suppose Hassell Formed a C Corporation, NewCorp

question 61

Multiple Choice

Suppose Hassell formed a C corporation, NewCorp. Inc., in 2014 with a calendar tax year and made an S election on April 14, 2014 with the consent of NewCorp. Inc.'s shareholders: Hassell, Richie Cunningham, and Arnold's, Inc. (a C corporation) . When is the S election effective?

• A) January 1, 2014.
• B) April 14, 2014.
• C) January 1, 2015.
• D) April 14, 2015.
• E) Never.

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Definitions:

Salaries

Payments made to employees, typically on a regular basis, for performing their job duties.

Administrative Department

A division within a company or organization that focuses on tasks related to the management and running of the organization, such as human resources, finance, and operations.

Occupied Space

Occupied space refers to the area within a property or facility that is currently being used or rented out, as opposed to areas that are vacant or unused.

Administrative Costs

Expenses related to the general operation of a business, including salaries of non-sales personnel, rent, utilities, and office supplies.