Problem: Sam, Joe, and Lisa are equal shareholders in Friends, inc., and S corporation. in the conditions listed below, how much income should each report from Friends, inc. under both the daily allocation and the interim closing books allocation method. There should be 6 answers.
Period Income
Jan 1 through March 15 125,000
March 15 through Dec 31 345,500
Jan 1 through Dec 31 (365 days) total 470,500
A. There are no sales of Friends, Inc. stock during the year
B. On March 15, Joe sells his stock to Lisa
C. On March 15, Sam and Lisa each sell their shares to Joe