Question
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. On March 15, 2021, Blinkin sells his shares to Nod. How much income
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Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. On March 15, 2021, Blinkin sells his shares to Nod. How much income should Blinkin report from SleepEZ for 2021 under the daily allocation? Refer to the following table for the timing of SleepEZs income.
Period
Income
January 1 through March 15 (74 days)
$150,000
March 16 through December 31 (291 days)
345,500
January 1 through December 31, 2021 (365 days)
$495,500
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Based upon the same facts in the prior question, how much income should Nod report from SleepEZ for 2021 under the specific identification method?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
