Doug, Kate, and Gabe Own Refiner Group, Inc IRefiner Group, Inc

question 25

Multiple Choice

Doug, Kate, and Gabe own Refiner Group, Inc., an electing S corporation. The shareholder's ownership percentages and fiscal year ends follow:
Which of the following statements is (are) correct?
$$\begin{array} { l l l } & \text { Ownership } & \text { Year End } \\\text { Doug } & 60 \% & \text { January } 31 \\\text { Kate } & 20 \% & \text { May } 31 \\\text { Gabe } & 15 \% & \text { September } 30\end{array}$$
I.Refiner Group, Inc. must use a calendar year.
II.Refiner Group, Inc. may elect to use a fiscal year ending January 31.
?

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Specific Performance

A legal remedy in which a court orders a party to perform a specific act, usually in accordance with a contract.

Transfer The Title

The process of legally changing ownership of a property or asset from one party to another.

Title Deed

A legal document or certificate proving ownership of a property or piece of land.

Contract Enforceable

A legally binding agreement that can be upheld in court.