#16

ABC Inc is a C corporation (calendar tax year) with John Smith, Jane Jones, and XYZ Incorporated (a C corporation) as shareholders. On January 15,2022,XYZ Incorporated, sold all its shares to Nancy Newton. On February 28, 2022, ABC Inc, filed an S corporation election, with Smith, Jones, and Newton all consenting to the election. What is the earliest effective date of the S election? January 1,2024 Never January 1,2023 February 28,2023 January 1, 2022