CB Corporation was formed as a calendar-year S corporation. Casey is a 60% shareholder and Bryant is a 40% shareholder. On September 30, 2014, Bryant sold his CB shares to Don. CB reported business income for 2014 as follows (assume that there are 365 days in the year): $$\begin{array} { | l | r | }
\hline { \text { Period } } & { \text { Income } } \
\hline \text { January 1 through September } 30 ( 273 \text { days } ) & \$ 200,000 \
\hline \text { October 1 through December } 31 ( 92 \text { days } ) & \underline { 530,000 } \
\hline \text { January 1 through December } 31 & \$ 730,000 \
\hline
\end{array}$$ How much 2014 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, 2014, Bryant sold his CB shares to Don. CB reported business income for 2014 as follows (assume that there are 365 days in the year): $$\begin{array} { | l | r | } 
\hline { \text { Period } } & { \text { Income } } \
\hline \text { January 1 through September } 30 ( 273 \text { days } ) & \$ 200,000 \
\hline \text { October 1 through December } 31 ( 92 \text { days } ) & \underline { 530,000 } \
\hline \text { January 1 through December } 31 & \$ 730,000 \
\hline
\end{array}$$ How much 2014 income is allocated to each shareholder if CB corp. uses the daily method of allocating income?

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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, 2014, Bryant sold his CB shares to Don. CB reported business income for 2014 as follows (assume that there are 365 days in the year): $$\begin{array} { | l | r | } 
\hline { \text { Period } } & { \text { Income } } \
\hline \text { January 1 through September } 30 ( 273 \text { days } ) & \$ 200,000 \
\hline \text { October 1 through December } 31 ( 92 \text { days } ) & \underline { 530,000 } \
\hline \text { January 1 through December } 31 & \$ 730,000 \
\hline
\end{array}$$ How much 2014 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 2014 Income Is Allocated to Each Shareholder If