Krause Corporation Makes an S Election,believing That It Has No

question 36

Multiple Choice

Krause Corporation makes an S election,believing that it has no current or accumulated E&P.However,after an IRS audit,Krause is found to have failed the passive investment income test for three consecutive years and also to have a SubChapter E&P balance from its three pre-election tax years.The IRS will

• A) automatically terminate the election and Krause cannot reelect for a 5-year time period.
• B) retroactively revoke the election to the first day on which it was effective and Krause will not be able to reelect.
• C) treat the error as such and allow the election to continue unbroken.
• D) likely treat the termination as inadvertent and will probably approve a continued S election if the corporation distributes the Subchapter C E&P.

Understand the importance of setting realistic goals for business messages.

Properly allocate time among planning, writing, and completing stages of the writing process.

Develop ideas that align with the intended outcome of the message.

Evaluate the purpose of a message through critical questioning.

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Definitions:

Chamomile Tea

A herbal tea made from dried chamomile flowers, known for its calming effects and potential health benefits.

Unexpectedly Admitted

The act of being hospitalized without prior planning, usually due to an emergency or sudden worsening of a health condition.

Intensive Care Unit

A specialized department in a hospital providing critical care and life support for seriously ill or injured patients.

Stressors

External or internal factors that cause stress, challenging an individual's ability to cope.