Determine the tax year(s) each of the following S corporations must use. Explain. a. Will, Dan, and
Question:
Determine the tax year(s) each of the following S corporations must use. Explain.
a. Will, Dan, and Tom are equal owners of Rheen Corporation, and each has a different fiscal year. Will has a fiscal year that ends April 30, Dan’s ends May 31, and Tom’s ends November 30.
b. Assume the same facts as in part a, except that Tom and Dan each own a 20% interest in Rheen and Will owns the remaining 60%.
c. Assume the same facts as in part b. Rheen’s business is seasonal; the heaviest revenue months are July and August. Revenues for 3 years are asfollows:
Transcribed Image Text:
July and August 12-Month Period Current year 1st preceding year 2nd preceding year 80,000 60,000 300 260,000 230,000
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a In general an S corporation must use a calendar year However it can choose an alternate year under ...View the full answer
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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