Identify Which of the Following Statements Is True

question 12

Multiple Choice

Identify which of the following statements is true.

• A)The natural business year for fiscal-year election purposes is any tax year that ends within six months after the peak period of business.
• B)Section 444 permits an S corporation to elect to use a fiscal year other than a permitted year.
• C)A new corporation that is 100% owned by Johnny Blake, a cash method of accounting taxpayer, makes an S election for its initial tax year. The S corporation must also elect to use the cash method of accounting as its overall accounting method.
• D)All of the above are false.

---

Definitions:

Best Interest

Acting with primary regard for someone's benefits and well-being, often used in a fiduciary or advisory context.

In-The-Money

This describes an option that has intrinsic value, being a call option with a strike price below the current market price or a put option with a strike price above the current market price.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.