What Tax Year-End Must Unincorporated Entities with Only One Owner

question 64

Multiple Choice

What tax year-end must unincorporated entities with only one owner adopt?

• A) The entity is free to adopt any tax year-end
• B) The entity must adopt the same year-end as its owner
• C) The entity must adopt a calendar year-end
• D)The entity may adopt any year-end except for a calendar year-end

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Definitions:

Marginal Revenue

The incremental income a business obtains by selling one more unit of a product or service.

Average Total Cost

The total cost of producing a certain quantity of output divided by that quantity, representing the per-unit cost of production.

Economic Losses

Financial losses incurred due to factors such as market fluctuations, business operation inefficiencies, or external events affecting the economy.

Average Variable Cost

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.