What method is automatically used to allocate income or losses (unless an election is made)?

Question

Quizplus · Accepted Answer

The per-day allocation method is automatically used to allocate income or losses, unless an election is made to use a different method. This method allocates income or losses based on the number of days in the year that each partner or shareholder held their interest in the business. This ensures a fair and proportionate allocation of income or losses based on each individual's ownership during the year.

What Method Is Automatically Used to Allocate Income or Losses