Ask Question
13 August, 15:31

Dart Corp., a calendar-year S corporation, had 60,000 shares of voting common stock and 40,000 shares of nonvoting common stock issued and outstanding. On February 23, 2014, Dart filed a revocation statement with the consent of shareholders holding 30,000 shares of its voting common stock and 5,000 shares of its nonvoting common stock. Dart's S corporation electionA Terminated as of January 1, 2015. B Did not terminate. C Terminated as of January 1, 2014. D Terminated on February 24, 2014.

+1
Answers (1)
  1. 13 August, 17:16
    0
    The answer is: B) Did not terminate.

    Explanation:

    S corporations (small business corporation) are corporations that choose to pass corporate income, losses, deductions, and credits through to their shareholders for taxation purposes.

    In order for an S Corporation to terminate, stockholders owning more than 50% of the corporation's stock must file a revocation statement.

    Dart Corp has 100,000 common stocks outstanding, so to file a revocation statement, stockholders owning at least 50,001 stocks must approve it. In this case only stockholders owning 35,000 stocks approved the revocation statement.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Dart Corp., a calendar-year S corporation, had 60,000 shares of voting common stock and 40,000 shares of nonvoting common stock issued and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers