X Co., a calendar year taxpayer, is formed 1/1/x6 by A and B, both individuals, and Y Corp.

On 1/6/x6, Y Corp. sells its shares of X Co. to C (an individual).

On 3/7/x6, X Co. elects to be an S corp and A, B, and C consent to the S election on that date.

Y Corp. doesn't consent to the election.

On 1/1/x7, X Co. satisfies the requirements to be an S corp.

X Co. is an S corp as of

None of these.

January 1, 20x6

March 7, 20x6

January 1, 20x7

40

40

1

40

40

If shareholders in an S corp, a calendar year taxpayer owning 81% of the S corporation stock, consent on March 8, 20x8, to revoke the S election and declare the revocation effective date to be May 31, 20x8, then the S election is terminated

January 1, 20x8.

January 1, 20x9.

None of these.

May 31, 20x8.

41

41

1

41

41

If an S corp., a calendar year taxpayer, has 100 individual shareholders, and one of those shareholders sells his shares to the 101st individual shareholder on October 16, 20x8,, the S corporation's tax year ends

None of these.

December 31, 20x8.

October 15, 20x8.

October 16, 20x8.