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

question 104

Essay

ABC was formed as a calendar-year S corporation with Alan,Brenda and Conner as equal shareholders.On May 1,2017,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 2017 as follows (assume that there are 365 days in the year):
If ABC uses the daily method of allocating income between the S corporation short tax year (January 1 - April 30)and the C corporation short tax year (May 1 − December 31),how much income will it report on its S corporation short tax year return and its C corporation short tax year return for 2017?

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Definitions:

Labor Force

The total number of people, including both the employed and unemployed, who are actively looking for work in an economy.

National Income

The total amount of money earned within a country from the production of goods and services over a specific period, typically one year.

Strike

A strike is a collective action undertaken by workers refusing to work, aiming to gain concessions from their employer regarding wages, conditions, or policies.

Union

An organized association of workers formed to protect and further their rights and interests; a labor union.