For the following questions, assume that after electing S corporation status Barry and Winnie had a change of heart and filed an election to terminate Omnioculars S election, effective August 1, 2016.

In 2016, Omniocular reported the following income/expense items:

	January 1July 31 2016 (213 days)			August 1December 31, 2016 (153 days)			January 1December 31, 2016
Sales revenue	$	80,000		$	185,000		$	265,000
Cost of goods sold		(40,000)			(20,000)			(60,000)
Salaries to Barry and Winnie		(60,000)			(40,000)			(100,000)
Depreciation expense		(7,000)			(2,000)			(9,000)
Miscellaneous expenses		(4,000)			(3,000)			(7,000)
Interest income		6,000			5,250			11,250
Overall net income (loss)	$	(25,000)		$	125,250		$	100,250

f.

For tax purposes, how would you recommend Barry and Winnie allocate income between the short S corporation year and the short C corporation year if they would like to minimize double taxation of Omnioculars income?

	Daily method
	Specific identification method

g.	Assume in part (f) that Omniocular allocates income between the short S and C corporation years in a way that minimizes the double taxation of its income. If Barrys stock basis in his Omniocular stock on January 1, 2016, is $50,000, what is his stock basis on December 31, 2016?