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Business, 04.08.2020 19:01 nagwaelbadawi
Samantha and Darren are 50% owners in Black Hat Corp., a calendar year S corporation. On June 29, Samantha sold her shares to Endora. The financial results of Black Hat using normal accounting rules are as follows: Income through June 30 = $34,000; income from July 1 - Dec 31 = $76,000 for total income for the year of $110,000. All the shareholders would like to limit the tax liability from the S corporation income. Considering these facts, would Endora prefer the daily method or the normal accounting method to allocate income? What method would Samantha prefer?
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Samantha and Darren are 50% owners in Black Hat Corp., a calendar year S corporation. On June 29, Sa...
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