Welch Inc. has used a fiscal year ending September 30 as its taxable year since its incorporation in 1988. The shareholders have decided to shut down Welch's business and dissolve the corporation on March 31. Which of the following statements is false?

Question

Quizplus · Accepted Answer

Since Welch's taxable year ends on September 30, its final tax return will cover the period from October 1 to March 31, which is less than 12 months and therefore considered a short-period return. However, option B correctly states this fact. Option C is false because it suggests that Welch's final tax return will only cover the period from January 1 to March 31, which is incorrect. Option D is not chosen because one of the statements is false.

Welch Inc Has Used a Fiscal Year Ending September 30 as as Its