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 April 18 (108 days) | $ 142,000 |
| April 19 through December 31 (257 days) | 423,000 |
| January 1 through December 31, 2022 (365 days) | $ 565,000 |
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. On April 18, 2022, Blinkin sells his shares to Nod.
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Financial Accounting
Authors: Libby, Short
6th Edition
978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881
