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 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income. Income $ 125,000 350,000 $ 475,000 Period January 1 through March 1 (60 days) March 2 through December 31 (305 days) January 1 through December 31, 2021 (365 days) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) c. On March 1, 2021, Winkin and Nod each sell their shares to Blinkin. Income Reported Daily Allocation Specific Identification Method Method Winkin Nod Blinkin
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 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ's income. Income $ 125,000 350,000 $ 475,000 Period January 1 through March 1 (60 days) March 2 through December 31 (305 days) January 1 through December 31, 2021 (365 days) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) c. On March 1, 2021, Winkin and Nod each sell their shares to Blinkin. Income Reported Daily Allocation Specific Identification Method Method Winkin Nod Blinkin
Chapter22: S Corporations
Section: Chapter Questions
Problem 36P
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Transcribed Image Text: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 2021 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 March 1 (60 days)
March 2 through December 31 (305 days)
$ 125,000
350,000
$ 475,000
January 1 through December 31, 2021 (365 days)
(Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
c. On March 1, 2021, Winkin and Nod each sell their shares to Blinkin.
Income Reported
Daily
Allocation
Specific
Identification
Method
Method
Winkin
Nod
Blinkin
Expert Solution
Introduction :
Given :
Total Income = $ 475000
January 1 to March 1 is $ 125000
March 2 to December 31 is $ 350000
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