CB Corporation was formed as a calendar-year S corporation.Casey is a 60% shareholder and Bryant is a 40% shareholder.On September 30,2018,Bryant sold his CB shares to Don.CB reported business income for 2018 as follows (assume that there are 365 days in the year):

$\begin{array} { l r }
\text { Period } & \text { Income } \
\text { Jaruary } 1 \text { through Septernber } 30 ( 273 \text { days) } & \$ 200,000 \
\text { October } 1 \text { through Decermber } 31 ( 92 \text { days } ) &\underline { 530,000 }\
\text { Jaruary } 1 \text { through Decernber } 31 & \underline {\$ 730,000}
\end{array}$ How much 2018 income is allocated to each shareholder if CB corp.uses the daily method of allocating income?

Question

CB Corporation was formed as a calendar-year S corporation.Casey is a 60% shareholder and Bryant is a 40% shareholder.On September 30,2018,Bryant sold his CB shares to Don.CB reported business income for 2018 as follows (assume that there are 365 days in the year):
 
 $\begin{array} { l r } 
\text { Period } & \text { Income } \
\text { Jaruary } 1 \text { through Septernber } 30 ( 273 \text { days) } & \$ 200,000 \
\text { October } 1 \text { through Decermber } 31 ( 92 \text { days } ) &\underline { 530,000 }\
 \text { Jaruary } 1 \text { through Decernber } 31 & \underline {\$ 730,000}
\end{array}$ How much 2018 income is allocated to each shareholder if CB corp.uses the daily method of allocating income?

Quizplus · Accepted Answer

The Answer of CB Corporation was formed as a calendar-year S corporation.Casey is a 60% shareholder and Bryant is a 40% shareholder.On September 30,2018,Bryant sold his CB shares to Don.CB reported business income for 2018 as follows (assume that there are 365 days in the year):
 
 $\begin{array} { l r } 
\text { Period } & \text { Income } \
\text { Jaruary } 1 \text { through Septernber } 30 ( 273 \text { days) } & \$ 200,000 \
\text { October } 1 \text { through Decermber } 31 ( 92 \text { days } ) &\underline { 530,000 }\
 \text { Jaruary } 1 \text { through Decernber } 31 & \underline {\$ 730,000}
\end{array}$ How much 2018 income is allocated to each shareholder if CB corp.uses the daily method of allocating income?

CB Corporation Was Formed as a Calendar-Year S Corporation How Much 2018 Income Is Allocated to Each Shareholder If