Separately stated items are allocated to the S corporation shareholders based on the number of shares of stock owned on the last day of the S corporation's taxable year.

Name: Separately stated items are allocated to the S corporation shareholders based on the number of shares of stock owned on the last day of the S corporation's taxable year.
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Question

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Separately stated items are allocated to S corporation shareholders based on their pro-rata share of ownership throughout the year, not just on the last day.

Separately Stated Items Are Allocated to the S Corporation Shareholders