E Corporation is a subchapter S corporation owned by three individuals with calendar year-ends. The corporation sells
Question:
E Corporation is a subchapter S corporation owned by three individuals with calendar year-ends. The corporation sells a sports drink as its principal product and has similar sales each month. What options does E Corporation have in choosing a tax year?
a. E Corporation may choose any month end as its tax year.
b. Because the owners of E Corporation have tax years ending in December, E Corporation must also choose a December year-end.
c. E Corporation may choose an October, November, or December tax year-end.
d. E Corporation may choose a tax year ending in September, October, or November, but only if the corporation also makes an annual cash deposit and adjusts the amount every year depending on the income deferred.
Step by Step Answer:
Income Tax Fundamentals 2023
ISBN: 9780357719527
41st Edition
Authors: Gerald E. Whittenburg, Steven Gill