Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, howmuch income should each report from SleepEZ for 2023 under both the daily allocation and the specificidentification allocation methods? Refer to the following table for the timing of SleepEZ's income.PeriodJanuary 1 through March 17 (76 days)March 18 through December 31 (289 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 March 17, 2023, Winkin and Nod each sell their shares to Blinkin.WinkinNodBlinkinIncome ReportedDailyAllocationMethodSpecificIdentificationMethodIncome$ 150,000400,000$ 550,000

Given :Total Income = $ 550,000January 1 to March 17 is $ 150,000March 18 to December 31 is $…

Answered: On March 17, 2023, Winkin and Nod each…

Business

Accounting

On March 17, 2023, Winkin and Nod each sell their shares to Blinkin.

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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