The XYZ partnership has three equal partners. Each partner's adjusted basis in the partnership was $150,000 at the beginning of the year. The partnership earned net income of $90,000 for the year (no separately stated items). The partnership made pro rata distributions to each partner of $40,000 cash plus identical pieces of equipment with fair market value of $30,000 and partnership basis of $15,000. How much must each partner include in gross income for the year as a result of the distribution?

The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.

The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.