1. X co., a calendar year taxpayer, is formed by C and D, both individuals, and Y corp. on 1/1/X2. On 3/4/X2, Y corp. sells its shares of X co. to E (an individual). On 3/14/X2, X co. elects to be an S Corp. and C, D and E consent to the S election on that date. Y corp. doesn’t consent to the election. On 1/1/X3, X co. satisfies the requirements to be an S corp. On what date is the S election effective?
2. R corporation, a calendar year taxpayer, is formed on November 9, 20X7. It first has shareholders on November 9, 20X7. It first acquires assets on December 23, 20X7 and begins doing business January 10, 20X8. R co. elects S status on January 24, 20X8. When does R co.’s first S tax year begin?