ABC was formed as a calendar-year S corporation with Alan,Brenda and Conner as equal shareholders.On May 1,2017,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 2017 as follows (assume that there are 365 days in the year):
If ABC uses the daily method of allocating income between the S corporation short tax year (January 1 - April 30)and the C corporation short tax year (May 1 − December 31),how much income will it report on its S corporation short tax year return and its C corporation short tax year return for 2017?

Question

ABC was formed as a calendar-year S corporation with Alan,Brenda and Conner as equal shareholders.On May 1,2017,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 2017 as follows (assume that there are 365 days in the year):
  If ABC uses the daily method of allocating income between the S corporation short tax year (January 1 - April 30)and the C corporation short tax year (May 1 − December 31),how much income will it report on its S corporation short tax year return and its C corporation short tax year return for 2017?

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 1,2017,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 2017 as follows (assume that there are 365 days in the year):
  If ABC uses the daily method of allocating income between the S corporation short tax year (January 1 - April 30)and the C corporation short tax year (May 1 − December 31),how much income will it report on its S corporation short tax year return and its C corporation short tax year return for 2017?

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