Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from
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 2025 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ’s income.
\r\n\r\n
\r\n Period \r\n | \r\n\r\n Income \r\n | \r\n
\r\n January 1 through March 15 (74 days) \r\n | \r\n\r\n $125,000 \r\n | \r\n
\r\n March 16 through December 31 (291 days) \r\n | \r\n\r\n 345,500 \r\n | \r\n
\r\n January 1 through December 31, 2025 (365 days) \r\n | \r\n\r\n $470,500 \r\n | \r\n