Holders of more than 25000 total shares must approve

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Unformatted text preview: tween the S and C corporation portions of the taxable year, not on a 50/50 split. Choice "d" is incorrect. Zinco's income must be allocated on a per-share, per-day basis between the S and C corporation portions of the taxable year. CPA-01970 Type1 M/C A-D 87. CPA-01970 ARE Nov 94 #43 Corr Ans: A PM#10 R 3-02 Page 48 As of January 1, 1993, Kane owned all the 100 issued shares of Manning Corp., a calendar year S corporation. On the 41st day of 1993, Kane sold 25 of the Manning shares to Rodgers. For the year ended December 31, 1993 (a 365-day calendar year), Manning had $73,000 in nonseparately stated income and made no distributions to its shareholders. What amount of nonseparately stated income from Manning should be reported on Kane's 1993 tax return? a. b. c. d. $56,750 $54,750 $16,250 $0 CPA-01970 Explanation 42 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. Maxixishere Pdf Collection Becker CPA Review, PassMaster Questions Lecture: Regulation 3 Choice "a" is correct. The mid-year change of ownership causes Man...
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