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:

Variable Input

An input whose quantity the firm can vary at any time to increase or decrease production.

Total Product Curve

The total product curve illustrates the relationship between the quantity of inputs used in production and the quantity of output produced, demonstrating the law of diminishing returns.

Variable Input

A production input whose quantity can be changed in the short term to adjust the level of output.

Marginal Product Curve

The marginal product curve depicts the change in output resulting from employing one more unit of a specific input, holding all other inputs constant, and typically features phases of increasing, constant, and diminishing marginal returns.