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 2022 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income.
| Period | Income |
|---|---|
| January 1 through May 9 (129 days) | $ 135,000 |
| May 10 through December 31 (236 days) | 393,000 |
| January 1 through December 31, 2022 (365 days) | $ 528,000 |
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. On May 9, 2022, Blinkin sells his shares to Nod.
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ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook
Authors: Sterling Libs FCCA
1st Edition
1911037129, 978-1911037125
