Western Corporation began operations in 1999. Its fiscal year end is October 31. This date coincides with its natural business year. On June 2, 2018, Western elects S corporation status. All of the corporate shareholders consented to the election. The earliest date the corporation is recognized as an S corporation is

Question

Quizplus · Accepted Answer

The S corporation election is effective at the start of the corporation's fiscal year if made within the first 2.5 months of the fiscal year. Since the election was made on June 2, 2018, it is effective for the fiscal year beginning November 1, 2018.

Western Corporation Began Operations in 1999