1. Discuss the various accounting methods and what types of considerations should be taken in determining which method is the best option for an S Corporation.
2. Explain the guidelines for choosing whether to elect a calendar year or fiscal year for financial reporting.
3. Describe the overall process for determining the income tax for an S Corporation.
4. Why would some items be separately stated and passed through to shareholders while others are not? What determines this?
5. Describe the different elections that could be taken as related to gross income and what influences these.
6. How might capital gains or losses impact the income distribution of an S Corporation?
7. Describe the guidelines that apply to related person transactions.
8. How is property distributions to shareholders handled typically?
Professional Development Question
You may use one or a combination of the following when completing this exercise:
1. Online research
2. Real-life experiences
3. Interview or professional experts
4. Textbook materials
Write a 1-2 page paper that covers the accounting methods that might be used by S Corporations and what types of decision criteria should be evaluated in selecting an optimal one. Students should also include a review of the two options for reporting periods (calendar vs. fiscal) and what types of things are used to decide which is the more appropriate one to elect, as an S Corporation filer.
Students should include at least one reference in their paper submission, in addition to theircomments and thoughts on the required content.