I did misspeak.  I do enter the total dividend as income and I do have individual Other Asset accounts to track my total equity in each coop.

This particular entry caught my attention; I was trying to get the proper entry path established because I thought this entry may be revisited.

I received a check for about 55% of my "allocation" amount; the check stub said the "allocation" amount was being furnished to the IRS.  All is fine and well, except my beginning equity balance and my ending equity balance are the same.  AND the 1099 is reporting the check amount, not the "allocation" amount.

I visited with the coop yesterday, "the check stub is wrong.  The allocation amount is correct but the coop will pay the income tax on the part that they reserved - the beginning/ending balance did not change because that's the way it is."  I'm sure there is some tax advantage to the coop to report an allocation and then put part of it in their pocket.

This coop did some magic with gain sales in 2008; the IRS allowed them to allocate production costs against their income in some way.