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Question - Allocations. V owns 500 shares of stock of an S corporation woth 2,000 shares outstanding. The cakender year S corporation's records show the following information:
Net ordinary income...........$200,000
Net capital loss....................(10,000)
Calculate V's share of the items if on March 15 he sells:
a. 200 of his shares of stock;
b. All 500 shares of his stock and the per-day allocation method is used;or
c. All 500 shares of stock and the interim closing of the books method is used.
The records reveal that through March 15, net ordinary income was $60,000 and net capital loss was $10,000.
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