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

Exercise 69

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.