are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, 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 March 15 (74 days) March 16 through December 31 (291 days) January 1 through December 31, 2023 (365 days) Income $ 125,000 345,500 $ 470,500 Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount
are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, 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 March 15 (74 days) March 16 through December 31 (291 days) January 1 through December 31, 2023 (365 days) Income $ 125,000 345,500 $ 470,500 Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
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 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 March 15 (74 days)
March 16 through December 31 (291 days)
January 1 through December 31, 2023 (365 days).
Income
$ 125,000
345,500
$ 470,500
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
c. On March 15, 2023, Winkin and Nod each sell their shares to Blinkin.
Answer is complete but not entirely correct.
Income Reported
Daily
Specific
Identification
Method
Allocation
Method
Winkin
$
95,390 $
95,390x
Nod
$
95,390 x $
95,390 x
Blinkin
$
565,891 $
279,720 x
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