ri Fecta , a partnership , had revenues of $ 200,000 in its first year of operations. The partnership has not collected on $20,000 of its sales and still owes $ 25,000 on $70,000 of merchandise it purchased. There were no inventory on hand at the end of the year .The partnership paid $25,000 in salaries. The partners invested $ 40,000 in business and $ 20,000 was borrowed on a five-year note.The partnership paid $2000 in interest that was the amount owed for the year and paid $ 8,000 for two year insurance policy on the first day of business. Tri Fecta has an effective income tax rate of 40%. Compute net income for the first year for Tri Fecta.

Kent contributed $50,000 in exchange for a 40% interest in a partnership at the beginning of the year. The partnership has no liabilities in place at the time of Kent's contribution. At the end of the year, the partnership correctly allocates $30,000 ordinary loss and a $50,000 long term capital loss to Kent. In addition, during the year, the partnership borrowed $100,000. $40,000 of this liability is allocable to Kent. At the end of the year, Kent's outside basis equals ____ and his capital account equals _______.

At year-end, the Queen City partnership has the following capital balances: $ 340,000 320,000 Isabella, Capital Catherine, Capital Elizabeth, Capital Victoria, Capital 290,000 280,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $320,000 from the business based on the original contractual agreement. Required: The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws. Isabella's capital before withdrawal of Elizabeth Isabella's share of goodwill recognition Isabella's capital balance after withdrawal of Elizabeth $ 0

The TimpRiders LP has operated a motorcycle dealership for a number of years. Amir is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Amir and Francesca had bases of $11,900 and $4,100, respectively, and the partnership did not have any liabilities. During the current year, the partnership reported the following results from operations: Net sales Cost of goods sold Operating expenses Short-term capital loss Tax-exempt interest §1231 gain On the last day of the year, the partnership distributed $4,100 each to Amir and Francesca. $ 684,000 511,000 186,000 Comprehensive Problem 09-81 Part 1 (Algo) a. Year-end basis b. Loss limited by tax basis c. Loss limited by passive activity 2,800 3,100 7,100 Required: a. What outside basis do Amir and Francesca have in their partnership interests…

Tri Fecta, a partnership, had revenues of $363,000 in its first year of operations. The partnership has not collected on $46,800 of its sales and still owes $39,200 on $205,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $29,000 in salaries. The partners invested $44,000 in the business and $25,000 was borrowed on a five-year note. The partnership paid $2,250 in interest that was the amount owed for the year and paid $9,000 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.   Multiple Choice   $179,150   $191,250   $183,650   $186,750