Train Corporation Is an S Corporation That Is Owned Equally

question 11

Multiple Choice

Train Corporation is an S corporation that is owned equally by Carlos and Diane at the beginning of the year. On April 21 (the 111th day of Train's tax year) of the current year, Carlos sells all of his Train Corporation stock to Andre. How many days will be used when computing Carlos's share of S corporation income for this year (a non-leap year) , assuming that a special income allocation election is not made?

• A)110
• B)111
• C)254
• D)255

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Definitions:

Transaction

A process of buying or selling goods or services, or any exchange of value between two or more parties.

Batch Processing

A method of processing data where a group of transactions is gathered over a period and processed together at once.

Completeness

The attribute of being whole or perfect, with no missing parts or elements.