Choice c is incorrect this is the income that should

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Unformatted text preview: 0 CPA-01964 Explanation Choice "c" is correct. ($310,250/365) × 90 = $76,500. Zinco will be taxed as an S corporation from January 1 to March 31, 1993, and a C corporation from April 1 to December 31, 1993. Absent the election to calculate the incomes of the S and C corporation portions of the year separately, Zinco's income is allocated on a per-share, per-day basis between the S and C corporation portions of the taxable year. 1993 has 365 days, 90 of which occurred before April 1. Choice "a" is incorrect. Absent the election to calculate the incomes of the S and C corporation portions of the year separately, Zinco's income is allocated on a per-share, per-day basis between the S and C corporation portions of the taxable year. This is the income allocated to the C corporation portion of the year. Choice "b" is incorrect. Absent the election to calculate the incomes of the S and C corporation portions of the year separately, Zinco's income is allocated on a per-share, per-day basis be...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.

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