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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 2015 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 15 (74 days)..........................................$125,000
March 16 through December 31 (291 days)......................................345,500
January 1 through December 31, 2015 (365 days).............................$470,500
a) There are no sales of SleepEZ stock during the year.
b) On March 15, 2015, Blinkin sells his shares to Nod.
c) On March 15, 2015, Winkin and Nod each sell their shares to Blinkin.
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