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Please show calculations and solve for the correct answer On January 1, 2020, Marsha and Jan were each 50% shareholders of Brady Corp., a calendar-year
Please show calculations and solve for the correct answer On January 1, 2020, Marsha and Jan were each 50% shareholders of Brady Corp., a calendar-year S corporation. During 2020, Marsha sold her shares of Brady Corp. to Cindy for $1,000,000. Marsha owned the shares for 100 out of 365 days during 2020, and Cindy owned the shares for the remaining 265 days of 2020 (assume 2020 was not a leap year). Brady Corp. had the following in 2020: Gross receipts: $1,112,473 Long-term capital gain: $129,427 (stock sold on December 15, 2020) Compensation: $270,073 Unless otherwise indicated, assume all items were earned/incurred ratably over the year (i.e. 100/365 while Marsha was a shareholder). What amount of the long-term capital gain is allocated to Marsha? Assume a short-year election was made (i.e. there was an interim closing of the books). Round your answer to the nearest whole dollar. . You Answered 17.725 Correct
Please show calculations and solve for the correct answer
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