Question: The answer is NOT 75,000 NOR 337,500 So the answer is either 25,000 or 412,5000 Thank you The Matthew Corporation, an S corporation, is equally

The answer is NOT 75,000 NOR 337,500 So the answer is eitherThe answer is NOT 75,000 NOR 337,500

So the answer is either 25,000 or 412,5000

Thank you

The Matthew Corporation, an S corporation, is equally owned by three shareholders-Emily, Alejandra, and Kristina. The corporation is on the calendar year basis for tax and financial purposes. On April 1 of the current year, Emily sold her one-third interest in the Matthew Corporation equally to the other two shareholders. For the current year, the corporation had nonseparately stated ordinary income of $900,000. For the current year, how much ordinary income should be allocated to Kristina on her Schedule K-1? Note: use months instead of days in your computations a. $25,000 X Ob. $75,000 C. $337,500 d. $412,500

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