If Annie and Andy (Each a 30% Shareholder in a Calendar

question 20

Multiple Choice

If Annie and Andy (each a 30% shareholder in a calendar year S corporation) file a revocation statement on February 10, 2018 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, 2018.
• B) February 10, 2018.
• C) January 1, 2019.
• D) February 10, 2019.
• E) None of the choices are correct.

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Definitions:

Maximin Strategy

A decision-making rule used in uncertain situations, aiming to select the option with the least possible loss or the maximum of the minimum gains.

Dominant Strategy

A strategy that is the best for a player in a game, regardless of the strategies chosen by other players.

Stackable Discounts

The ability to apply multiple discounts in succession to an initial price, cumulatively reducing the final cost.

Maximin Strategy

A decision rule used in game theory and decision theory for minimizing the possible loss for a worst-case (maximum loss) scenario.