Problem 20-75 (LO 20-5, LO 20-6) (Algo) [The following information applies to the questions displayed below.] Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated $20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and received a cash distribution of $52,200. Note: Do not round intermediate calculations. Problem 20-75 Part a (Algo) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704- 1(d)(2) and Revenue Rule 66-94.] Amount Deducted Currently §1231 losses $ 20,880 Short-term capital losses $ 3,000

Problem 20-75 (LO 20-5, LO 20-6) (Algo) [The following information applies to the questions displayed below.] Juan Diego began the year with a tax basis in his partnership interest of $52,200. During the year, he was allocated $20,880 of partnership ordinary business income, $73,080 of $1231 losses, and $31,320 of short-term capital losses and received a cash distribution of $52,200. Note: Do not round intermediate calculations. Problem 20-75 Part a (Algo) a. What items related to these allocations does Juan Diego actually report on his tax return for the year? [Hint. See Regulations $1.704- 1(d)(2) and Revenue Rule 66-94.] Amount Deducted Currently §1231 losses $ 20,880 Short-term capital losses $ 3,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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51) The AB Partnership reports the following items for its current tax year Item Income Amount Operating income Rental income Interest income: $90,000 15,000 Tax-exempt municipal bonds Corporate bonds Sec, 1231 gain Sec. 1245 gain Long-term capital gain 2,000 4,000 20,000 18,000 7,000 Expenses Rental expenses Salaries paid to employees (not partners) Charitable contributions 12,000 30,000 5,000 3,000 Interest paid related to borrowings used to finance municipal bonds (1) What is the AB Partnership's ordinary income for the current year? (2) What are the AB Partnership's separately stated items for the current year?
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Hw.58. 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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Required information [The following information applies to the questions displayed below.] Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $124,000 and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $56,000 and was appraised at $180,000. The land was also encumbered with a $56,000 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $7,200 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: $ 480,000 470,000 70,000 1,500 600 Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions 300 Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) 300 3,000 c. Using the…
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Required information Problem 09-71 (LO 09-5) (Static) [The following information applies to the questions displayed below.] Pam, Sergei, and Mercedes are all one-third partners in the capital and profits of Oak Grove General Partnership. Partnership liabilities are allocated among the partners in accordance with their capital and profits interests. In addition to their normal share of the partnership's annual income, Pam and Sergei receive annual guaranteed payments of $20,000 each to compensate them for additional services they provide. Oak Grove's income statement for the current year reflects the following revenues and expenses: Sales revenue Dividend income §1231 losses Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income In addition, Oak Grove owed creditors $90,000 at the beginning of the year and $150,000 at the end, and Pam, Sergei, and Mercedes had a tax basis of $50,000 in their interests at the beginning of the…
Problem 10-32 (LO 10-1) (Algo) Skip to question [The following information applies to the questions displayed below.] Allison, Keesha, and Steven each owns an equal interest in KAS Partnership, a calendar-year-end, cash-method entity. On January 1 of the current year, Steven's basis in his partnership interest is $32,000. During January and February, the partnership generates $36,600 of ordinary income and $6,060 of tax-exempt income. On March 1, Steven sells his partnership interest to Juan for a cash payment of $56,000. The partnership has the following assets and no liabilities at the sale date: Tax Basis FMV Cash $ 40,000 $ 40,000 Land held for investment 40,000 80,000 Totals $ 80,000 $ 120,000 Problem 10-32 Part a (Algo) a. Assuming KAS's operating agreement provides for an interim closing of the books when partners' interests change during the year, what is Steven's basis in his partnership interest on March 1 just prior to the sale?