Question
Please help with these questions. Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income
Please help with these questions.
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2018 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZ's income.
PeriodIncomeJanuary 1 through March 15 (74 days)$125,000March 16 through December 31 (291 days)345,500January 1 through December 31, 2018 (365 days)$470,500
(Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
b.On March 15, 2018, Blinkin sells his shares to Nod.
Income Reported
Daily Allocation Method Specific Identification Method
Winkin:
Blinkin:
Nod:
c.On March 15, 2018, Winkin and Nod each sell their shares to Blinkin.
Income Reported
Daily Allocation Method Specific Identification Method
Winkin:
Blinkin:
Nod:
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