Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used the available funds to acquire equipment costing $200,000 and to fund current operating expenses. The partnership agreement provides that depreciation will be allocated 80% to Bryan and 20% to Cody. All other items of income and loss will be allocated equally between the partners. Upon liquidation of the partnership, property will be distributed to the partners in accordance with their § 704(b) book capital account balances. Any partner with a negative capital account must contribute cash in the amount of the negative balance to restore the capital account to $0. In its first year, the partnership reported an ordinary loss (before depreciation) of $80,000 and depreciation expense of $36,000. In its second year, the partnership reported $40,000 of income from operations (before depreciation), and it reported depreciation expense of $57,600. a. Calculate the partners' bases in their partnership interests at the end of the first and second tax years.

Coy and Matt are equal partners in the Matcoy Partnership. Each partner has a basis in his partnership interest of $33,000 at the end of the current year, prior to any distribution. On December 31, each receives an operating distribution. Coy receives $13,000 cash. Matt receives $3,850 cash and a parcel of land with a $9,150 fair market value and a $5,000 basis to the partnership. Matcoy has no debt or hot assets.     a. What is Coy's recognized gain or loss? What is the character of any gain or loss?

A and B form the equal AB partnership on January 1 of Year 1. A contributes equipment with a tax basis of $8,000 and a fair market value of $20,000. The equipment has been on a 10-year recovery period and has four years remaining. (Were the equipment newly acquired at the time fo the contribution to the partnership, the recovery period would again be 10 years.) B contributes $20,000, which the partnership uses to buy land. The partnership's income equals expenses except for depreciation deductions. Assuming the partnership uses the remedial allocation method, describe how depreciation deductions will be allocated to A and B from the equipment. Ignore any applicable first year depreciation conventions.

The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 91,500 7,500 (53,500) (15,600) (11,100) (5,300) 5,450 (5,100) Note: Negative amounts should be indicated by a minus sign. Required: a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Complete this question by entering your answers in the tabs below. Required A1 Required A2 How much ordinary income (loss) is allocated to Gary for the year? Note: Round your intermediate computations to the nearest…