FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mercedes a calendar year tax payer is a 40% general
partner in a calendar year cash basis partnership. For
the current year department should receive 160,000
gross revenues from services rendered and paid the
following amounts: we expense 28,500 salary to
employees 53 800 guaranteed payment to Mercedes
33,300 cash distributions to partner 18,000 payment
for accounting services 7200. Mercedes share of
income from the partnership for the current year is
A. 33300
B. 40980
C. 14880
D. 48180
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Transcribed Image Text:Mercedes a calendar year tax payer is a 40% general partner in a calendar year cash basis partnership. For the current year department should receive 160,000 gross revenues from services rendered and paid the following amounts: we expense 28,500 salary to employees 53 800 guaranteed payment to Mercedes 33,300 cash distributions to partner 18,000 payment for accounting services 7200. Mercedes share of income from the partnership for the current year is A. 33300 B. 40980 C. 14880 D. 48180
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