If Annie and Andy (Each a 30% Shareholder) File a Revocation

question 82

Multiple Choice

If Annie and Andy (each a 30% shareholder) file a revocation on March 18, 2014 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, 2014.
• B) March 16, 2014.
• C) January 1, 2015.
• D) March 16, 2015.
• E) None of these.

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Definitions:

Effective Capacity

The maximum output rate or service capacity an operation, process, or facility can be expected to achieve under normal conditions.

Design Capacity

The maximum output or performance level that a facility or product is engineered to achieve under ideal conditions.

Capacity Alternatives

Various options available to a business for adjusting its capacity to meet changes in demand.

Market Acceptance

The degree to which a new product, service, or innovation is embraced by potential customers or end-users in the marketplace.