Cecelia Is the Sole Shareholder of Aqua Corporation,a Newly Formed

question 53

Essay

Cecelia is the sole shareholder of Aqua Corporation,a newly formed C corporation.Joyce is the sole shareholder of Teal Corporation,a newly formed C corporation that is classified as a personal service corporation.Both Cecelia and Joyce plan to have their corporations elect a March 31 fiscal year-end.Will the IRS treat both corporations alike with respect to the fiscal year election? Explain.

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Definitions:

Environment

The environment encompasses all external factors and conditions that surround and affect living organisms, including natural, social, and built aspects.

Attitudes

Psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor.

Events

Occurrences or happenings, especially those of significance.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort (dissonance) when they hold conflicting beliefs, attitudes, or values and are motivated to reduce this discomfort.