Ed was a 25% shareholder in Horsey Corporation, as S Corporation. On April 12, Horsey brought in
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Ed was a 25% shareholder in Horsey Corporation, as S Corporation. On April 12, Horsey brought in a fifth, equal shareholder. At that time, Horsey had year-to-date earnings of $450,000. Horseys earnings for the year totaled $1,300,000. Using the daily allocation method (per share, per day), how much income would be allocated to Ed for the year?
Would your answer to 3 change if Horsey had elected to use the books and records method? How much income would be allocated to Ed then?
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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