Ask Question
Today, 13:43

Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc. earned $200,000 from January 1 to January 29 and a total of $1,460,000 from January 1 through December 31 (365 days) ?

+2
Answers (1)
  1. Today, 17:20
    0
    The answer is: $29,000

    Explanation:

    We first need to calculate Joe's S Corp.'s daily revenue:

    daily revenue = total revenue for the year / 365 days

    daily revenue = $1,460,000 / 365 = $4,000

    Since Joe owned 25% of Joe's Corp., $1,000 ($4,000 x 25%) of the daily revenue belongs to Joe.

    Joe should report 29 days of daily revenue, equivalent to $29,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the daily allocation method, how much income ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers