Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions...
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Accounting
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 March 23 (82 days)
$
160,000
March 24 through December 31 (283 days)
408,000
January 1 through December 31, 2017 (365 days)
$
568,000
(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.
What is the daily allocation method and specific Identification method for Winkin, Blinkin, and Nod?
b. On March 23, 2017, Blinkin sells his shares to Nod.
What is the daily allocation method and specific Identification method for Winkin, Blinkin, and Nod?
c. On March 23, 2017, Winkin and Nod each sell their shares to Blinkin.
What is the daily allocation method and specific Identification method for Winkin, Blinkin, and Nod?
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