Accounting -Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation.

| January 30, 2017

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 for 2014 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZ’s income. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

Period Income
January 1 through April 2 (92 days) $ 186,000
April 3 through December 31 (273 days) 347,000
January 1 through December 31, 2014 (365 days) $ 533,000
a.
There are no sales of SleepEZ stock during the year.

Income Reported
Daily Allocation Method Specific Identification Method
Winkin
Blinkin
Nod

b.
On April 2, 2014, Blinkin sells his shares to Nod.

Income Reported
Daily Allocation Method Specific Identification Method
Winkin
Blinkin
Nod

c.
On April 2, 2014, Winkin and Nod each sell their shares to Blinkin.

Income Reported
Daily Allocation Method Specific Identification Method
Winkin
Blinkin
Nod

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