Guaranteed payments made by a partnership to partners for services rendered to the partnership, that are deductible business expenses under the Internal Revenue Code, are:   1. Deductible expenses on the U.S. Partnership Return of Income, Form 1065, in order to arrive at partnership income (loss).   II. Included on schedules K-1 to be taxed as ordinary income to the partners.   A. I only.   OB. II only.   OC. Both I and II.   OD. Neither I nor II.

What is the difference between the aggregate and entity theory of partnership taxation? Can you please provide two examples of how partnership tax rules reflect the aggregate theory and two examples of how they reflect the entity theory.

Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices and the capital balances of Smith and Jones were $54,800 and $59,300, respectively. If the parties agree that the business is worth $152,100, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott? a.$38,000 b.$97,300 c.$92,800 d.$19,000

Assume the partnership income-sharing agreement calls for income to be divided with a salary of $41,000 to Coburn and $36,000 to Webb, interest of 10% on beginning capital, and the remainder divided 50%-50%. Prepare the journal entry to record the allocation of net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Income Summary Coburn, Capital Webb, Capital Debit 68000 Credit 33850 32150

! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, 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 $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time? Self-employment income (loss)

The sum of the partners’ ending tax basis amounts equals the partners’ ending tax basis capital account balances. These amounts are shown on the partnership's Schedule K. Group of answer choices True False

Coburn (beginning capital, $60,000) and Webb (beginning capital $86,000) are partners. During 2022, the partnership earned net income of $74,000, and Coburn made drawings of $20,000 while Webb made drawings of $22,000.

1. A partnership has four equal partners who share profits and losses in accordance with their respective interests. It has $400,000 in taxable income but doesn't distribute any cash to the partners. a. What amount of income will the partnership report on its tax return? None. There is no business income tax on a partnership. b. What amount of the partnership's taxable income will be subject to tax at the partnership level? c. Will each partner recognize taxable income from their interest in the partnership? If so, how much? d. If ABC was a corporation with four equal owners, how would this change your answers in parts (a)- (c)?

The VWXY Partnership owns the following assets on December 30 of the current year: E (Click the icon to view the assets.) i (Click the icon to view more information.) Requirement What are the tax consequences of the distribution to the partnership, Vicki, and the other partners? ..... Start by completing a Sec. 751 nonliquidating distribution analysis. (If a box is not used in the table or the balance is "0", leave the box empty; do not enter a zero. Round to the nearest dollar. Use a minus sign or parentheses in the Difference column if Vicki gave up her interest in a particular property.) Vicki's Vicki's Data Table Beginning Interest Before Interest After Нурpothetical Partnership Distribution Distribution Proportionate Actual Amount (1/4) (1/5) Distribution Distribution Difference Assets Partnership's Basis FMV Sec. 751 assets: Cash 60,000 $ 60,000 Receivables 44,000 72,000 120,000 Inventory Total Sec. 751 assets $ 132,000 $ 224,000 Total Non-Sec. 751 assets: Print Done Total…

Which of the following regarding partnership taxation is INCORRECT?   Question 16 options:   A partnership is a tax paying entity for Federal income tax purposes.   Partnership income is comprised of ordinary partnership income or loss and separately stated items   A partnership is required to file a return with the IRS.    A partner’s profit-sharing percent may differ from the partner’s loss-sharing percent.   All of these statements are correct.