Zinco corp was a calendar year S corp. Zinco's status terminated on April 1 year 6 when Case corp became a shareholder. During year 6 ( 365 day calendar year) Zinco had nonseparately computed income of $310,250. If not election was made by Zinco, what amount of the income, if any was allocated to the S short year for year 6?
Zinco corp was a calendar year S corp. Zinco's status terminated on April 1 year 6 when Case corp became a shareholder. During year 6 ( 365 day calendar year) Zinco had nonseparately computed income of $310,250. If not election was made by Zinco, what amount of the income, if any was allocated to the S short year for year 6?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zinco corp was a calendar year S corp. Zinco's status terminated on April 1 year 6 when Case corp became a shareholder. During year 6 ( 365 day calendar year) Zinco had nonseparately computed income of $310,250. If not election was made by Zinco, what amount of the income, if any was allocated to the S short year for year 6?
a $233,750, b $155,125 c $76,500 d $0
My answer is c
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Owner’s Liability is limited irrespective of its tax status under S corporation.
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