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

question 79

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:

Unsaturated Fatty Acid

A type of fatty acid with one or more double bonds in the hydrocarbon chain, which can affect the fluidity of cell membranes.

Triglyceride

A type of fat or lipid found in blood, formed from one molecule of glycerol and three fatty acids.

Micelle

An aggregate of surfactant molecules dispersed in a liquid colloid, forming a structure with hydrophobic tails in the center and hydrophilic heads on the outside.

Carbon-carbon Double Bond

A strong chemical bond involving the sharing of two pairs of electrons between two carbon atoms, characterized by its reactivity and presence in unsaturated compounds.