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 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 1,2017,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 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 1,2017,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 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,Brenda