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 30 shares to his brother and 45 shares to his daughter. WRT's ordinary income for the year was $204,000. Required: What portion of this income must each shareholder include in income? (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.) Amount Brother's income Daughter's income Mr. Wallace's income
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 30 shares to his brother and 45 shares to his daughter. WRT's ordinary income for the year was $204,000. Required: What portion of this income must each shareholder include in income? (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.) Amount Brother's income Daughter's income Mr. Wallace's income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 30 shares to his brother and 45 shares to his daughter. WRT's ordinary income for the year was
$204,000.
Required:
What portion of this income must each shareholder include in income? (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.)
Amount
Brother's income
Daughter's income
Mr. Wallace's income
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