Herold had been a calendar year S corporation since 1990 . On October 10 , 2017 , Mrs . Hughes sold 18 shares of Herold stock to a foreign partnership , thereby terminating Herold's S election. Herold's taxable income for the entire 2017 calendar year was $592,030 . Describe the federal tax returns that Herold must file for 2017 , determine how much income must be reported on each , and compute any corporate income tax that Herold must pay