WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares. On September 30, he gave 25 shares to his brother and 40 shares to his daughter. WRT's ordinary income for the year was $226,000. Required: What portion of this income must each shareholder include in income? Note: Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Amount Brother's income $ 14,237 Daughter's income $ 22,779 Mr. Wallace's income $ 188,919
WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr. Wallace owned all 100 shares. On September 30, he gave 25 shares to his brother and 40 shares to his daughter. WRT's ordinary income for the year was $226,000. Required: What portion of this income must each shareholder include in income? Note: Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round other intermediate calculations and final answers to the nearest whole dollar amount. Answer is complete but not entirely correct. Amount Brother's income $ 14,237 Daughter's income $ 22,779 Mr. Wallace's income $ 188,919
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vinubhai
Transcribed Image Text:WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the year, Mr.
Wallace owned all 100 shares. On September 30, he gave 25 shares to his brother and 40 shares to his
daughter. WRT's ordinary income for the year was $226,000.
Required:
What portion of this income must each shareholder include in income?
Note: Assume 365 days in a year. Round income per day of ownership to 4 decimal places. Round
other intermediate calculations and final answers to the nearest whole dollar amount.
Answer is complete but not entirely correct.
Amount
Brother's income
$
14,237
Daughter's income
$
22,779 ×
Mr. Wallace's income
$
188,919 x
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