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Problem - CB Corporation was formed as a calendar-year S corporation. Casey is a 60 percent shareholder and Bryant is a 40 percent shareholder. On September 30, 2019, Bryant sold his CB shares to Don. CB reported business income for 2019 as follows: (Assume that there are 365 days in the year.)
Period
Income
January 1 through September 30 (273 days)
$203,650
October 1 through December 31 (92 days)
533,650
January 1 through December 31
$737,300
Required - How much 2019 income is allocated to each shareholder if CB Corporation uses the daily method of allocating income?
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