Question
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
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?
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Accounting Managing Business Information Preliminary Edition Volume I
Authors: Thomas L. Albright , Robert W. Ingram
1st Edition
0324061625, 978-0324061628
