Question: Herold had been a calendar year S corporation since 1990
Herold had been a calendar year S corporation since 1990. On October 10, 2014, Mrs. Hughes sold 18 shares of Herold stock to a foreign partnership, thereby terminating Herold’s S election. Herold’s taxable income for the entire 2014 calendar year was $592,030. Describe the federal tax returns that Herold must file for 2014, determine how much income must be reported on each, and compute any corporate income tax that Herold must pay.
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