Problem 22-49 (LO 22-3) (Algo)

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 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZs income.

Period	Income
January 1 through March 17 (76 days)	$150,000
March 18 through December 31 (289 days)	400,000
January 1 through December 31, 2021 (365 days)	$550,000

(Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. There are no sales of SleepEZ stock during the year. PLEASE SHOW ALL WORK

b. On March 17, 2021, Blinkin sells his shares to Nod. PLEASE SHOW ALL WORK

c. On March 17, 2021, Winkin and Nod each sell their shares to Blinkin. PLEASE SHOW ALL WORK

thank you!