For Each of the Following Independent Cases Below,indicate Whether the Entity

question 99

Essay

For each of the following independent cases below,indicate whether the entity will be taxed as an S corporation or a C corporation for the respective period.
a.Richard Corporation,uses the calendar year as its tax year.It files an S election on March 31,2013.If no reasonable cause is shown,how will Richard be treated for tax purposes in 2013?
b.Shareholders owning more than 50% of the stock of Harper Corporation,a qualifying calendar-year S corporation,consent to a voluntary revocation statement filed by the corporation on March 12,2013.How will Harper Corporation be treated for tax purposes in 2013?
c.Shareholders owning more than 50% of the stock of Hazelwood Corporation,a qualifying calendar-year S corporation,consent to a voluntary revocation statement filed by the corporation on March 12,2013.The prospective termination date is July 1,2013.How will Hazelwood Corporation be treated for tax purposes in 2013?
d.Omni Corporation,a calendar-year S corporation,adds a 101st shareholder on July 8,2013.The new shareholder is not related to any of the other shareholders.

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Definitions:

Chi-Squared Test

A statistical test used to determine if there is a significant association between two categorical variables.

Nominal Variables

Variables that represent categories with no intrinsic ranking or order, such as gender, nationality, or brand names.

Degrees of Freedom

The number of values in a calculation that are free to vary without violating any constraints.

Contingency Table

A tabular method to display the frequency distribution of variables along with their joint distribution.