Problem:
Pale Motel, Inc., was a C corporation using a fiscal year ending April 30 for tax purposes for all tax years through April 30, 2009. In May 2009, the corporation made an S election.
Required:
Question 1: What are the implications of the election for Pale's tax year? Explain.
Question 2: Also, what are some reasons for switching from a fiscal to calendar year (as some companies have been known to do)?
Note: Please show the work not just the answer.