CB Corporation was formed as a calendar-year S corporation. Casey is a 60 percent shareholder and Bryant is a 40 percent shareholder. On September 30, 2020, Bryant sold his CB shares to Don. CB reported business income for 2020 as follows: (Assume that there are 365 days in the year.) Period Income January 1 through September 30 (273 days) $ 221,900 October 1 through December 31 (92 days) 551,900 January 1 through December 31 $ 773,800 How much 2020 income is allocated to each shareholder if CB Corporation uses the daily method of allocating income?
CB Corporation was formed as a calendar-year S corporation. Casey is a 60 percent shareholder and Bryant is a 40 percent shareholder. On September 30, 2020, Bryant sold his CB shares to Don. CB reported business income for 2020 as follows: (Assume that there are 365 days in the year.) Period Income January 1 through September 30 (273 days) $ 221,900 October 1 through December 31 (92 days) 551,900 January 1 through December 31 $ 773,800 How much 2020 income is allocated to each shareholder if CB Corporation uses the daily method of allocating income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CB Corporation was formed as a calendar-year S corporation. Casey is a 60 percent shareholder and Bryant is a 40 percent shareholder. On September 30, 2020, Bryant sold his CB shares to Don. CB reported business income for 2020 as follows: (Assume that there are 365 days in the year.)
| Period | Income |
|---|---|
| January 1 through September 30 (273 days) | $ 221,900 |
| October 1 through December 31 (92 days) | 551,900 |
| January 1 through December 31 | $ 773,800 |
How much 2020 income is allocated to each shareholder if CB Corporation uses the daily method of allocating income?
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