I. Corporation is a calendar year corporation owned by three individuals Adams, Baker and Chris. It has been in existence since 1999. On February 4, 2012, the three shareholders consent to an election on the part of the corporation to be taxed pursuant to Subchapter S. What is the effective date of the election and when does P's status change from a "C" Corp to an "S" Corp? A P 1. Would your answer to part (A) be different if the election is made and consented to on April 4, 2012? 2. If Adams and Baker, but not Chris, consented to a revocation of the S election on June 8, 2014, what is the effective date of the revocation? 3. If Adams sold one share of stock to a non-resident alien individual on October 4 2014, when would P Corporation cease to be a Subchapter S corporation? B. P Corporation is a calendar year corporation owned by three individuals Adams, Baker and Chris. It was formed on November 18, 2013. If the three shareholders consent to an election to be taxed as an S corporation on December 1, 2013 what is the effective date of that election? 1. What would be the effective date of the election if the shareholders consented to the election on January 28, 2014? II. XYZ Corporation has elected to be taxed as a Subchapter S corporation. Joe Smith owned 100% of the corporation until February 28, 2013, On that date he sold 30% of his stock to Brian Bond. On June 30, 2013 he sold another 20% of his stock to Brian. For the calendar year 2013 its net book income is equal to $128,000. The following items were included in arriving at this figure Long-term Capital gains Short-term Capital losses Charitable Contributions Dividend Income Tax exempt Municipal bond interest 20,000 12,000 6,000 1,000 13,000 What is XYZ's taxable income for the year 2013 and what is Joe's share of that income as well as the separately stated items of the corporation