Foggy, Inc., a calendar-year corporation that has been in business for 10 years, makes an S...
Foggy, Inc., a calendar-year corporation that has been in business for 10 years, makes an S corporation election on June 1, 2017. When will the election take effect?
| A. | January 1, 2017 | ||
| B. | June 1, 2017 | ||
| C. | January 1, 2018 | ||
| D. | June 1, 2018 |
Homework Answers
Answer :- Option C. January 1, 2018.
Explanation :- In case of S-corporation, The election will take effect from Calendar year. In the above question, The company applies for election as S-corporation on June 1, 2017. The latest upcoming calendar year will be January 1, 2018 only (after making election for S-corporation).
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