ABC was formed as a calendar-year S corporation with Alan, Brenda and Conner as equal shareholders. On May 1, 2018, ABC's S election was terminated after Conner sold his ABC shares (one-third of all shares) to his solely owned C corporation Conner, Inc. ABC reported business income for 2018 as follows (assume that there are 365 days in the year):

If ABC uses the specific identification method to allocate income, how much will it allocate to the S corporation short year and C corporation short year?

Question

ABC was formed as a calendar-year S corporation with Alan, Brenda and Conner as equal shareholders. On May 1, 2018, ABC's S election was terminated after Conner sold his ABC shares (one-third of all shares) to his solely owned C corporation Conner, Inc. ABC reported business income for 2018 as follows (assume that there are 365 days in the year):
  
If ABC uses the specific identification method to allocate income, how much will it allocate to the S corporation short year and C corporation short year?

Quizplus · Accepted Answer

The Answer of ABC was formed as a calendar-year S corporation with Alan, Brenda and Conner as equal shareholders. On May 1, 2018, ABC's S election was terminated after Conner sold his ABC shares (one-third of all shares) to his solely owned C corporation Conner, Inc. ABC reported business income for 2018 as follows (assume that there are 365 days in the year):
  
If ABC uses the specific identification method to allocate income, how much will it allocate to the S corporation short year and C corporation short year?

ABC Was Formed as a Calendar-Year S Corporation with Alan