Kerry is a partner in the Kerry, Davis, Smith & Jones Partnership. Kerry owned 25% from January 1, 2021, to June 30, 2021, when she bought Jones’s 25% interest. She owned 50% for the rest of the year. The partnership had ordinary income of $175,200 and $20,000 in long-term capital gains. Required: Barring any special allocations in a partnership agreement, what is Kerry’s share of income?
Kerry is a partner in the Kerry, Davis, Smith & Jones Partnership. Kerry owned 25% from January 1, 2021, to June 30, 2021, when she bought Jones’s 25% interest. She owned 50% for the rest of the year. The partnership had ordinary income of $175,200 and $20,000 in long-term capital gains. Required: Barring any special allocations in a partnership agreement, what is Kerry’s share of income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kerry is a partner in the Kerry, Davis, Smith & Jones Partnership. Kerry owned 25% from January 1, 2021, to June 30, 2021, when she bought Jones’s 25% interest. She owned 50% for the rest of the year. The partnership had ordinary income of $175,200 and $20,000 in long-term
Required:
Barring any special allocations in a partnership agreement, what is Kerry’s share of income?
Note: Do not round any division. Round other computations to the nearest whole dollar value.
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