Question
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. On March 15, 2019, Blinkin sells his shares to Nod. How much income
Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. On March 15, 2019, Blinkin sells his shares to Nod. How much income should Blinkin report from SleepEZ for 2019 under the daily allocation? Refer to the following table for the timing of SleepEZs income.
| Period | Income |
| January 1 through March 15 (74 days) | $115,000 |
| March 16 through December 31 (291 days) | 345,500 |
| January 1 through December 31, 2019 (365 days) | $460,500 |
Based upon the same facts in the prior question, how much income should Nod report from SleepEZ for 2019 under the specific identification method?
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
