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

question 53

Essay

ABC was formed as a calendar-year S corporation with Alan, Brenda, and Conner as equal shareholders. On May 1, 2020, ABC's S election was terminated after Conner sold his ABC shares (one-third of all shares)to his solely owned C corporation, Conner, Incorporated ABC reported business income for 2020 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:

Paralanguage

Non-verbal elements of communication used to convey emphasis or emotion, such as tone of voice or gesture.

Body Language

Non-verbal communication through physical behaviors, such as gestures, postures, and expressions, which can convey emotions and intentions.

Nonverbal Communication

A form of communication that involves the transmission of messages without the use of words, such as gestures, facial expressions, and body language.

Body Language

Non-verbal communication through physical behaviors such as gestures, posture, and facial expressions.