LO.6 Noon, Inc., a calendar year S corporation, is equally owned by Ralph and Thomas. Thomas dies on April 1 (not a leap year), and his estate selects a March 31 fiscal year. Noon has $400,000 of income for January 1 through March 31 and $600,000 for the remainder of the year.
• a. Determine how income is allocated to Ralph and Thomas under the pro rata approach.
• b. Determine how income is allocated to Ralph and Thomas under the per-books method.