The Specific Identification Method and Monthly Allocation Method Are Methods

question 38

True/False

The specific identification method and monthly allocation method are methods an S corporation may use to allocate its income across short tax years that result from an involuntary S election termination.
The two acceptable methods are the specific identification method and the daily method.

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Definitions:

Calculates

The action of determining a numerical result based on given inputs or formulas, typically performed by software or a calculator.

Statistic

A numerical datum derived from a set of data, often used for analyzing and interpreting information.

Summary Function

A feature in applications that performs calculations on a set of values to return a single summary result, like sum or average.

Mathematical Function

A mathematical function is a relation between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.