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Business, 21.02.2020 00:46 tatielder4896

For the following questions, provide an explanation of the correct answer and why the other choices are incorrect.

2) Zinco Corp. was a calendar year S corporation. Zinco’s S status terminated on April 1, year 6, when Case Corp. became a shareholder. During year 6 (365-day calendar year), Zinco had non-separately computed income of $310,250. If no election was made by Zinco, what amount of the income, if any, was allocated to the S short year for year 6?

a) $233,750

b) $155,125

c) $76,500

d) $0

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