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?
$0 CPA-01970 Explanation
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 Choice "a" is correct. The mid-year change of ownership causes Man...
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