of January 3, 20X1, Bennett and Malik each owned 100 shares of the 200 issued shares of derman stock. On January 31, 20X1. Bennett and Malik each sold 30 shares to Gibbs. No ction was made to terminate the tax year. Fedderman had net business income of $16,000 for year ended December 31, 20X1, and made no distributions to its shareholders. Fedderman's