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Correct - all items reported on K1 must be allocated not only according to number of shares - but also according to the time shares were owned.
If S-corporation received its income evenly throughout the year - we may simply prorate income according to the time period and then according to number of shares owned during each period - and combine results on K1s.
If income was not received evenly - you might want to prepare internal tax return separately for each period and generate separate sets of K1s.
However for the filing - you will still use combined tax return for the whole tax year.
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