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Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed...

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 2018 under both the daily allocation and the specific identification allocation method? Refer to the following table for the timing of SleepEZ’s income.

Period

Income

January 1 through February 12 (42 days)

$

128,000

February 13 through December 31 (323 days)

362,000

January 1 through December 31, 2018 (365 days)

$

490,000

b. On February 12, 2018, Blinkin sells his shares to Nod.

Income reported

Daily Allocation method

Specific Identification Method

Winkin

Blinkin

Nod

c. On February 12, 2018, Winkin and Nod each sell their shares to Blinkin.

Income reported

Daily Allocation method

Specific Identification Method

Winkin

Blinkin

Nod
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