Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an Scorporation. In the conditions listed below, how much income shouldeach report from SleepEZ for 2018 under both the daily allocationand the specific identification allocation method? Refer to thefollowing table for the timing of SleepEZ’s income.
| Period | Income |
| January 1 through April 4 (94 days) | $ | 139,000 |
| April 5 through December 31 (271 days) | | 405,000 |
| January 1 through December 31, 2018 (365 days) | $ | 544,000 |
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(Do not round intermediate calculations. Round yourfinal answers to the nearest whole dollar amount.)
a. There are no sales of SleepEZ stock duringthe year.
b. On April 4, 2018, Blinkin sells his sharesto Nod.
c. On April 4, 2018, Winkin and Nod each selltheir shares to Blinkin.
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| | Income Reported | | Daily Allocation Method | Specific Identification Method | | Winkin | | | | Blinkin | | | | Nod | | |
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