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 2016 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 April 19 (110 days) | $ | 209,000 |
| April 20 through December 31 (256 days) | 359,000 | |
| January 1 through December 31, 2016 (366 days) | $ | 568,000 |
|
a. There are no sales of SleepEZ stock during the year.
b. On April 19, 2016, Blinkin sells his shares to Nod.
c. On April 19, 2016, Winkin and Nod each sell their shares to Blinkin. | ||
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