Question
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
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 2016 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 February 18 (49 days) | $ | 209,000 |
| February 19 through December 31 (317 days) | 424,000 | |
| January 1 through December 31, 2016 (366 days) | $ | 633,000 |
|
a. There are no sales of SleepEZ stock during the year. b. On February 18, 2016, Blinkin sells his shares to Nod. c. On February 18, 2016, Winkin and Nod each sell their shares to Blinkin. | ||
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The Safety Audit Designing Effective Strategies
Authors: Roger Saunders
1st Edition
0273034480, 978-0273034483
