Pierre X owns 100% of the shares of Corporation X. Corporation X owns 50% of the shares of Corporation XY, which holds several investments. The investments in Corporation XY consist of bonds, rental real estate, and a 40% interest in a partnership that operates a chain of retail stores. The remaining 50% of the shares of Corporation XY are owned by Corporation Y. Corporation Y is wholly owned by John Y.
The partnership and all three corporations account for their income on an annual basis at the following fiscal year ends:

The partnership and all three corporations distribute their profits to the owners on the last day of the fiscal year.  In April 20X0, the partnership earned an unusually high monthly profit.

Required:
1.  Prepare a diagram of the financial structure of these entities from the information provided above.
2. Which entities within the structure are subject to income tax?
3. Based on the activities described, which types of income for tax purposes will be earned by each entity?
4. Based on each entity's distribution policy, what is the last date on which Pierre X can report the unusually high profits earned by the partnership in April 20X0? Provide a brief analysis tracing the April profits through the organizational structure.

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Partnershp Corporation XY Corporation X Corporation Y February 28 February 28 January 31 December 31