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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 2017 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 March 1 (60 days) $ 125,000
March 2 through December 31 (305 days) 350,000
January 1 through December 31, 2017 (365 days) $ 475,000

a. There are no sales of SleepEZ stock during the year.

b. On March 1, 2017, Blinkin sells his shares to Nod.
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