Bilbeaux Corporation is a calendar year corporation that starts business on January 1, 20X1. Bibeaux files an election to be treated as a S corporation on April 2, 20X2, when it files its tax return for 20X1. Bilbeaux will be treated as an S corporation for 20X1. True or False?

Stewart Holdings Ltd. is a Canadian controlled private corporation (CCPC) that has a fiscal period of November 1 to October 31. Stewart Holdings Ltd. has taxable income of $275,000 in the current year and has a policy of always claiming the small business deduction on its tax return each year. Mr. Steve Stewart is the sole shareholder of Stewart Holdings Ltd. Steve has not been too involved in the preparation of the corporate income tax returns in the past neither is aware of the rules under the Income Tax Act, so he has several questions for you about the administrative requirements for income tax purposes for his corporation, Stewart Holdings Ltd.    A few weeks after filing the corporation’s tax return, Mr. Stewart receives a Notice of Assessment from Canada Revenue Agency that indicates that changes were made to the current year’s tax return for Stewart Holdings Ltd. Mr. Stewart does not agree with the changes made by Canada Revenue Agency and would like to dispute the matter.…

On January 1, Gold Corporation (a calendar year taxpayer) has E & P of $30,000 and generates no additional E & P during the year. On March 31, the corporation distributes $40,000 to its sole shareholder, Ava (basis in stock of $8,000). Determine the effect of the distribution on Ava’s taxable income and stock basis.

A corporation operating its business as a(n) have more than 100 shareholders. makes this election with the Internal Revenue Service (IRS) and cannot