High Corporation incorporates on May 1 and begins business on May 10 of the current year. What

ACC 455 Entire Course Link

https://uopcourses.com/category/acc-455/
High Corporation incorporates on May 1 and begins business on May 10 of the current year. What alternative tax years can High elect to report its initial year's income?



A.

Unless High Corporation is an S corporation or a personal service corporation, High can select a tax year ending on the last day of any month.

 



B.

High Corporation cannot select its tax year. The IRS must determine the company's tax year. Therefore, High Corporation must wait for the IRS's written statement that is mailed after incorporation takes place.



C.

High Corporation can only select May 31 as its tax year since that is the month of incorporation, or December 31.



D.

Unless High Corporation is a personal service corporation, High can select May 31 or December 31 as a tax year.
Powered by