Please help: If Bashir owned 30% of Red Corp. for the first 200 days...
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Accounting
Please help:
If Bashir owned 30% of Red Corp. for the first 200 days of 2020 (assume 2020 had 365 days total - ignore the leap year) and then sold all of his shares to Manuela, what amount of short-term capital gain is allocated to Bashir for 2020? Assume a short-year election was made when Bashir sold his shares of Red Corp.
**(I answered this two times, $1,973 and $3,600; both are not correct.)
income is earned/expenses are incurred consistently throughout the year. Bashir and Manuela are sole shareholders of Red Corp., an S corporation. Red Corp. had the following in 2020: Gross receipts: $1,000,000 $300,000 $2,750 in first 200 days; $5,000 $2,250 after Cost of goods sold: Municipal bond interest: Short-term capital gain: Long-term capital loss: $12,000 stock sold on Dec. 1 $3,000 stock sold on March 1 Compensation: $50,000 Utilities: $20,000 Advertising: $8,000 Charitable contribution: $10,000 donation made Feb. 1
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