Which annual accounting period may the following independent taxpayers use? a. A nonseasonal business organized as...
Which annual accounting period may the following independent taxpayers use?
a. A nonseasonal business organized as an S corporation where its shareholders are not all on the calendar year?
b. A salaried employee with a part-time consulting practice.
c. A C corporation that commenced business on January 2 and has a natural business year ending in December.
d. A partnership with four equal partners, two on the calendar year and two on June 30 years, but with a natural business year ending in January.
e. A partnership with two calendar year partners.
f. An S corporation with one shareholder only, who is on November 30 year personally.
Homework Answers
a. A non-seasonal business organized as an S corporation that has the shareholders who are not all on the calendar year is allowed only to use the calendar year.
b. A salaried employee who also has a part-time consulting practice is allowed only to use the calendar year.
c. A corporation who started business on January 2 and the natural business year is ending in December then the corporation is allowed to use any year which it initially adopted.
d. A partnership that has four equal partners, wherein two on June 30 years and two on the calendar year, however with a natural business year ending in January, are allowed to use the calendar year. They may also opt a January 31 year but with permission.
e. A partnership with two calendar year partners are allowed to use the calendar year with a grant of permission for the usage of the natural business year.
f. An S corporation with one shareholder only and who is on a November 30 year personally is allowed for the usage of the calendar year
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