9 ! 5 Part 1 of 3 points eBook Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $19,000, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 83,200 6,300 (40,700) (16,600) (16,600) (3,400) 5,600 (4,800) Note: Negative amounts should be indicated by a minus sign. Hint Required: Print References a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Mc Graw Hill Complete this question by entering your answers in the tabs below. Required A1 Required A2 Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Note: Round your intermediate computations and final answers to the nearest whole dollar amount. Description Total Amount Allocated to Gary Separately Stated Items on Schedule K-1: < Required A1 Required A2 > < Prev 9 89 10 11 of 15 Next >

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 3SEB

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Sales revenue	$ 83,200
Gain on sale of land (§1231)	6,300
Cost of goods sold	(40,700)
Depreciation—MACRS	(16,600)
Employee wages	(16,600)
Cash charitable contributions	(3,400)
Municipal bond interest	5,600
Other expenses	(4,800)

Required:

a-1. How much ordinary income (loss) is allocated to Gary for the year?

a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss).

b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner.

PLEASE RESPOND TO ENTIRE QUESTION

9
!
5
Part 1 of 3
points
eBook
Required information
[The following information applies to the questions displayed below.]
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $19,000,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
Employee wages
Cash charitable contributions
Municipal bond interest
Other expenses
$ 83,200
6,300
(40,700)
(16,600)
(16,600)
(3,400)
5,600
(4,800)
Note: Negative amounts should be indicated by a minus sign.
Hint
Required:
Print
References
a-1. How much ordinary income (loss) is allocated to Gary for the year?
a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income
(loss).
Mc
Graw
Hill
Complete this question by entering your answers in the tabs below.
Required A1 Required A2
Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment
income (loss).
Note: Round your intermediate computations and final answers to the nearest whole dollar amount.
Description
Total
Amount
Allocated
to Gary
Separately Stated Items on Schedule K-1:
< Required A1
Required A2 >
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9
89
10
11
of 15
Next >

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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