2. E Corporation is a subchapter S corporation owned by three individuals with calender year-ends. The corporation
Question:
2. E Corporation is a subchapter S corporation owned by three individuals with calender 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 a ‘‘required tax payment’’ and adjusts the amount every year depending on the income deferred.
Step by Step Answer:
Income Tax Fundamentals 2011
ISBN: 9780538469197
29th Edition
Authors: Gerald E. Whittenburg, Martha Altus-Buller