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3 September, 02:16

Evan, a shareholder, owned 20% of Yorker's stock for 200 days and 25% of Yorker's stock for the remaining 165 days of the year (not a leap year). Using the required per-day allocation method, Evan's share of the S corporation's ordinary income of $60,000 (rounded to the nearest dollar) is:A. $15,000. B. $18,000. C. $13,356. D. $6,781. E. $6,575.

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  1. 3 September, 05:57
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    C. $13,356

    Explanation:

    Evan, a shareholder, owned 20% of Yorker's stock for 200 days and 25% of Yorker's stock for the remaining 165 days of the year (not a leap year).

    Using the required per-day allocation method, Evan's share of the S corporation's ordinary income of $60,000 (rounded to the nearest dollar) is:

    0.2 x 60,000 x (200 / 365) + 0.25 x 60,000 x (165/365) = $13,356.16
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