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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 17 (107 days) | $ 128,000 |
April 18 through December 31 (258 days) | 406,000 |
January 1 through December 31, 2022 (365 days) | $ 534,000 |
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
On April 17, 2022, Winkin and Nod each sells his shares to Blinkin.
\begin{tabular}{|l|c|c|} \hline \multicolumn{3}{|c|}{ Income Reported } \\ \hline & DailyAllocationMethod & SpecificIdentificationMethod \\ \hline Winkin & & $2,667 \\ \hline Nod & & \\ \hline Blinkin & & \\ \hline \end{tabular}Step by Step Solution
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