When a Sec

question 85

Multiple Choice

When a Sec. 444 fiscal-year election is made, the S corporation makes required payments to the IRS in order to continue to use the fiscal year as its tax year. Which of the following statements about the tax year is correct?

• A)The Sec. 444 payment is deductible by the S corporation as an income tax.
• B)The Sec. 444 payment is allocated ratably to each shareholder and claimed as a tax payment on their own tax return(s).
• C)The Sec. 444 payments are refundable if the S election is terminated.
• D)The Sec. 444 payments must be made quarterly on the same dates that the S corporation's estimated tax payments are otherwise due.

Understand the implications and calculation methods for changes in employment numbers in different industries.

Assess the economic impact of different rates on investments and choose the optimal investment option.

Critically analyze real-life financial news and advertisements for their acknowledgment of the time value of money.

Compare and calculate the economic value of professional contracts considering the time value of money.

---

Definitions:

Monetary Neutrality

The concept that changes in the money supply only affect nominal variables in the economy (such as prices, wages, and exchange rates) in the long term, without affecting real variables (like employment and real GDP).

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to new conditions or markets.

Quantity Theory

An economic theory that suggests the general price level of goods and services is directly proportional to the amount of money in circulation.

Money Supply

The total economic resources available in an economy at a certain period, including cash, coins, and the money in checking and savings accounts.