are equal shareholders in SleepEZ, an S corpo rt from SleepEZ for 2023 under both the daily lowing table for the timing of SleepEZ's incom Period _6 (136 days)
are equal shareholders in SleepEZ, an S corpo rt from SleepEZ for 2023 under both the daily lowing table for the timing of SleepEZ's incom Period _6 (136 days)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alpesh
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Required information
[The following information applies to the questions displayed below.]
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 2023 under both the daily allocation and the specific identification allocation
methods? Refer to the following table for the timing of SleepEZ's income.
Period
January 1 through May 16 (136 days)
May 17 through December 31 (229 days)
January 1 through December 31, 2023 (365 days)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
c. On May 16, 2023, Winkin and Nod each sell their shares to Blinkin.
> Answer is complete but not entirely correct.
Income Reported
Daily
Allocation
Method
$ 73,900 $
$ 447,201 x S
$ 73,900 $
Winkin
Nod
Blinkin
Specific
Identification
Method
60,667✔
473,667 X
60,667
Income
$ 182,000
413,000
$ 595,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f40121d-73e1-42c0-9c04-01f2e93883a0%2F73a96b24-ef59-43d1-ba2d-f4edd4256059%2F5qs73i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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 2023 under both the daily allocation and the specific identification allocation
methods? Refer to the following table for the timing of SleepEZ's income.
Period
January 1 through May 16 (136 days)
May 17 through December 31 (229 days)
January 1 through December 31, 2023 (365 days)
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
c. On May 16, 2023, Winkin and Nod each sell their shares to Blinkin.
> Answer is complete but not entirely correct.
Income Reported
Daily
Allocation
Method
$ 73,900 $
$ 447,201 x S
$ 73,900 $
Winkin
Nod
Blinkin
Specific
Identification
Method
60,667✔
473,667 X
60,667
Income
$ 182,000
413,000
$ 595,000
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