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 May 29 (149 days) | $ | 167,000 |
May 30 through December 31 (216 days) | 441,000 | |
January 1 through December 31, 2017 (365 days) | $ | 608,000 |
|
(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.
Income Reported
Daily Allocation Method Specific Identification Method
Winkin __________ ___________
Blinkin ___________ ____________
Nod ___________ ____________
b. On May 29, 2017, Blinkin sells his shares to Nod.
Income Reported
Daily Allocation Method Specific Identification Method
Winkin __________ ___________
Blinkin ___________ ____________
Nod ___________ ____________
c. On May 29, 2017, Winkin and Nod each sell their shares to Blinkin.
Income Reported
Daily Allocation Method Specific Identification Method
Winkin __________ ___________
Blinkin ___________ ____________
Nod ___________ ____________
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