If Annie and Andy (Each a 30% Shareholder in an S

question 18

Multiple Choice

If Annie and Andy (each a 30% shareholder in an S corporation) file a revocation on February 10, 2016 to terminate their S corporation's S election, what is the effective date of the S corporation termination (assuming they do not specify one) ?

• A) January 1, 2016.
• B) February 10, 2016.
• C) January 1, 2017.
• D)February 10, 2017.
• E)None of these

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Definitions:

Breach of Contract

A situation where one or more parties involved in a contract fail to fulfil their legal obligations as outlined in that contract.

Writing Requirement

A legal stipulation that certain kinds of contracts must be in writing to be enforceable.

Purchase Price

The amount of money that is required to buy something.

Incorporation

The process of legally declaring a corporate entity to be separate from its owners, thereby providing limited liability and other benefits.