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 $214,000. 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. Brother's income Daughter's income Mr. Wallace's income Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
$214,000.
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.
Brother's income
Daughter's income
Mr. Wallace's income
Amount
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 $214,000. 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. Brother's income Daughter's income Mr. Wallace's income Amount
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