Question
QRS Corporation has elected to be taxed as a Subchapter S corporation. John Martin owned 100% of the corporation until April 15, 2019 (a period
QRS Corporation has elected to be taxed as a Subchapter S corporation. John Martin owned 100% of the corporation until April 15, 2019 (a period of 105 days). On April 16 he transferred 25% of his stock to Bill Smith. John owned 75% and Bill owned 25% (a period of 138 days). On September 1, 2019, John sold another 20% of his stock to Bill. For the remainder of the year, John owned 55% and Bill owned 45% of the corporation. For the calendar year 2019 QRS Corporations non-separately stated income was equal to $1,095,000.
What is Johns share of the 2019 non-separately stated income? Explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started