Doug,Kate,and Gabe own Refiner Group,Inc. ,an electing S corporation.The shareholder's ownership percentages and fiscal year ends follow:
Which of the following statements is (are)correct?

I.Refiner Group,Inc.must use a calendar year.
II.Refiner Group,Inc.may elect to use a fiscal year ending January 31.

Question

Doug,Kate,and Gabe own Refiner Group,Inc. ,an electing S corporation.The shareholder's ownership percentages and fiscal year ends follow:
Which of the following statements is (are)correct?

I.Refiner Group,Inc.must use a calendar year.
II.Refiner Group,Inc.may elect to use a fiscal year ending January 31.
​

Quizplus · Accepted Answer

As an S corporation, Refiner Group, Inc. can adopt a fiscal year ending on any month except February 29th. Therefore, statement II is correct. Statement I is incorrect since Refiner Group, Inc. could choose a fiscal year end instead of a calendar year end.

Doug,Kate,and Gabe Own Refiner Group,Inc