Question

Which of the following is NOT a method by which income can be allocated between a short S corporation tax year and a short C corporation tax year?

a. FIFO method
b. Pro-rata method
c. Specific identification method
d. LIFO method

Answer 1

The LIFO method is NOT a way to allocate income between a short S corporation tax year and a short C corporation tax year.

Step-by-step explanation:

The method that is NOT a way to allocate income between a short S corporation tax year and a short C corporation tax year is d. LIFO method. The LIFO (Last In, First Out) method is a method used for inventory valuation, not for allocating income between short tax years for corporations. This method assumes that the last items purchased or produced are the first ones sold or used, which is not relevant to income allocation between short tax years.