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On April 15, 2022, Winkin and Nod each sells his shares to Blinkin. Winkin Nod Blinkin Income Reported Daily Allocation Method Specific Identification Method

On April 15, 2022, Winkin and Nod each sells his shares to Blinkin. Winkin Nod Blinkin Income Reported Daily Allocation Method Specific Identification Method

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 2022 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 April 15 (105 days) April 16 through December 31 (260 days) January 1 through December 31, 2022 (365 days) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. c. On April 15, 2022, Winkin and Nod each sells his shares to Blinkin. Winkin Nod Blinkin Income Reported Daily Allocation Method Income $ 162,000 396,000 $ 558,000 Specific Identification Method
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 2022 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 April 15 (105 days) April 16 through December 31 (260 days) January 1 through December 31, 2022 (365 days) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. c. On April 15, 2022, Winkin and Nod each sells his shares to Blinkin. Winkin Nod Blinkin Income Reported Daily Allocation Method Income $ 162,000 396,000 $ 558,000 Specific Identification Method
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