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 29 (149 days) | $ 167,000 |
| May 30 through December 31 (216 days) | 441,000 |
| January 1 through December 31, 2022 (365 days) | $ 608,000 |
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
b. On May 29, 2022, Blinkin sells his shares to Nod.
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Auditing And Assurance Services
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
12th Edition
0136128270, 9780136128274
