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

question 61

Essay

ABC was formed as a calendar-year S corporation with Alan,Brenda,and Conner as equal shareholders.On May 1,2019,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 2019 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?

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Definitions:

Scatter Diagram

A type of graph used in statistics to display values for two variables for a set of data, showing the relationship between the variables.

Linear Model

A statistical model assuming a linear relationship between the input variables (predictors) and a single output variable.

Income

The financial gain received by an individual or entity, usually through wages, investments, or business operations.

Least Squares Regression Line

A straight line that minimizes the sum of the squared differences between observed and predicted values in a dataset.