Assume Joe Harry Sells His 25% Interest in Joe's S

Multiple Choice

Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the specific identification allocation method, how much income does Joe Harry report if Joe's S Corp., Inc. earned $200,000 from January 1 to January 29 and a total of $1,460,000 from January 1 through December 31 (365 days) ?

A) $50,000.
B) $200,000.
C) $28,000.
D) $112,000.
E) None of the choices are correct.