McGraw-Hill's Taxation of Business Entities 3rd Edition by Connie Weaver, Brian Spilker, Edmund Outslay, John Robinson, Ronald Worsham, Benjamin Ayers, John Barrick

Exercise 23

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 2011 under both the daily allocation and the specific identification allocation method Refer to the following table for the timing of SleepEZ's income.

a. There are no sales of SleepEZ stock during the year.
b. On March 16, 2011, Blinkin sells his shares to Nod.c. On March 16, 2011, Winkin and Nod each sell their shares to Blinkin.