Question: 17. Absent an election to close the books, the allocation of nonseparately stated income or loss for an S corporation shareholder that changed his ownership

17. Absent an election to close the books, the allocation of nonseparately stated income or loss for an S corporation shareholder that changed his ownership interest during the year is computed based on which of the following ownership percentages?

a. Ownership percentage at the end of the S corporation year.

b. Ownership percentage computed on a per-share per-day basis.

c. Ownership percentage at the beginning of the S corporation year.

d. Ownership percentage determined as an average of the beginning and ending ownership percentages.

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