Several Individuals Acquire Assets on Behalf of Skip Corporation on May

question 14

Multiple Choice

Several individuals acquire assets on behalf of Skip Corporation on May 28, purchased assets on June 3 and began business on June 11. They subscribe to shares of stock, file articles of incorporation for Skip, and become shareholders on June 21. The S election must be filed no later than 2 1/2 months after:

• A) May 28.
• B) June 3.
• C) June 11.
• D) June 21.
• E) December 31.

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Definitions:

Sale of Goods

A transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.

Tangible Personal Property

Physical items that can be owned and have value, such as furniture, jewelry, and vehicles.

Consideration

Something of value exchanged between parties in a contract that induces them to enter into the agreement.

Simple Contract

An agreement made between parties that does not necessarily have to be in writing but is binding and enforceable by law.