Derby Corporation is a calendar-year taxpayer that is owned equally by Vivian, Rob, Danny, and...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Derby Corporation is a calendar-year taxpayer that is owned equally by Vivian, Rob, Danny, and Doug Derby. At the close of business on May 31, Rob Derby sells his 25% stock interest to Paula Bryan. Which of the following statements about the S election is correct?
| Paula has 30 days to terminate the S election, otherwise the election remains in place for the entire year and all subsequent years. | ||
| A new S election form must be filed by June 30 of the same year, with all shareholders consenting to the election. If a new S election is not filed, the election terminates on June 30 of that year. | ||
| Paula must consent to the S election, otherwise the election terminates at the close of business on May 31. | ||
| None of the above statements are correct. |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.