1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense Distribution to Mary 30,000 20,000 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000
and Mary's beginning basis is 70,000
Sales
200,000
Long term capital gain
Short term capital loss
6,000
-4,000
Dividend income
2,000
salaries
50,000
Rent Expense
20,000
Interest income
5,000
Depreciation
Section 179 expense
30,000
20,000
Distribution to Mary
40,000
Distrbution to John
30,000
1 Calculate ordinary income
2 Calculate Separately Reported Items
3 Calculate ending basis for John and Mary.
Transcribed Image Text:1 John and Mary are equal partnership in a partnership. John's beginning basis is 50,000 and Mary's beginning basis is 70,000 Sales 200,000 Long term capital gain Short term capital loss 6,000 -4,000 Dividend income 2,000 salaries 50,000 Rent Expense 20,000 Interest income 5,000 Depreciation Section 179 expense 30,000 20,000 Distribution to Mary 40,000 Distrbution to John 30,000 1 Calculate ordinary income 2 Calculate Separately Reported Items 3 Calculate ending basis for John and Mary.
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