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 2017 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 18 (108 days) $ 142,000 April 19 through December 31 (257 days) 423,000 January 1 through December 31, 2017 (365 days) $ 565,000 (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. Compute income reported via daily allocation method for: Winkin Blinkin Nod b. Compute the income reported via the specific identification method for: Winkin Blinkin Nod
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