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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: $1,067,890 Long-term capital gains: $100,567 (stock sold on March 1, 2020) Compensation: $356,935 Advertising: $175,325 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 ordinary business income (or loss) is allocated to Marsha? Assume no interim closing of the books. Round your answer to the nearest whole dollar. You Answered 73,355 Correct Answer 73,374 margin of error 1-2
Please show calculations and solve for the correct answer
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