q. 1

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 2019 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZs income.

Period

Income

January 1 through April 3 (93 days)

$

180,000

April 4 through December 31 (272 days)

393,000

January 1 through December 31, 2019 (365 days)

$

573,000

On April 3, 2019, Blinkin sells his shares to Nod.

winkin

blinkin

nod

q2.

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 2019 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZs income.

Period	Income
January 1 through April 3 (93 days)	$	180,000
April 4 through December 31 (272 days)		393,000
January 1 through December 31, 2019 (365 days)	$	573,000

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

On April 3, 2019, Winkin and Nod each sell their shares to Blinkin.

Period	Income
January 1 through April 3 (93 days)	$	180,000
April 4 through December 31 (272 days)		393,000
January 1 through December 31, 2019 (365 days)	$	573,000
On April 3, 2019, Blinkin sells his shares to Nod. winkin blinkin nod

Period

Income

January 1 through April 3 (93 days)

$

180,000

April 4 through December 31 (272 days)

393,000

January 1 through December 31, 2019 (365 days)

$

573,000

On April 3, 2019, Blinkin sells his shares to Nod.

winkin

blinkin

nod