BUSA427_Chapter13.docx - Chapter 13 Ch 13 Question 31 The following accounting period options are a Newly organized C corporation may select any tax

BUSA427_Chapter13.docx - Chapter 13 Ch 13 Question 31 The...

This preview shows page 1 - 2 out of 3 pages.

Chapter 13 Ch. 13: Question 31 The following accounting period options are: a. Newly organized C corporation may select any tax year and can differ from the shareholders. b. Sole proprietorships must use the same period for business reporting as they use for personal purposes. c. Partnerships must use same tax year as that of its partners who have a majority interest. Since more information was not given, the following could also apply: If partners owning a majority interest have different tax years, partnership must adopt same tax year as that of its principal partners. Or, partnership must use a year that results in least aggregate deferral of income to partners. Also we do not know how long they have had the company, but if the natural business year pattern were to apply, it would exist when the taxpayer receives 25% or more of its gross receipts in last two months of the selected tax year, and this pattern must repeat for three consecutive years. (IRS approval is automatic.) d. S corporations are generally required to be a calendar year. Also we do not
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 3 pages?

  • Fall '14
  • fabioambrosio
  • Accounting, Options, Generally Accepted Accounting Principles, Goods Sold, FIFO and LIFO accounting, Wash Company

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes