A review of Bearing's Year 2 records disclosed the following taxinformation:Wages $20,000; Taxable interest and qualifying dividends 4,000;Schedule C trucking business net income 32,000; Rental (loss) fromresidential property (35,000); Limited partnership (loss) (5,000); Bearingactively participated in the rental property and was a limited partner in thepartnership. The bearing had sufficient amounts at risk for the rentalproperty and the partnership.Required:What is Bearing's Year 2 adjusted gross income?

To calculate Bearing's Year 2 Adjusted Gross Income (AGI), we need to sum up all income sources and…

Answered: A review of Bearing's Year 2 records…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 3BCRQ

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Financial Account
Kim received a 1/3 profits and capital interest in Bright Line, LLC in exchange for legal services she provided. In addition to her share of partnership profits or losses, she receives a $22,000 guaranteed payment each year for ongoing services she provides to the LLC. For X4, Bright Line reported the following revenues and expenses: Sales - $142,000, Cost of Goods Sold - $82,000, Depreciation Expense - $41,000, Long-Term Capital Gains - $7,000, Qualified Dividends - $5,200, and Municipal Bond Interest - $3,200. How much ordinary business income (loss) will Bright Line allocate to Kim on her Schedule K-1 for X4? Multiple Choice ($3,000). $10,600. $13,800. $19,000. None of the choices will be reported as ordinary business income (loss) on Schedule K-1.
Georgio owns a 30 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS §179 deduction* Employee wages Nondeductible fines and penalties Municipal bond interest Short-term capital gains Guaranteed payment to Sandra $ 82,750 $ 18,400 $(49,250) $ (5,950) $(18,900) $(12,300) $ (3,200) $ 6,500 $ 5,100 $ (3,950) *Assume the $179 property placed in service limitation does not apply. a. How much ordinary business income (loss) is allocated to Georgio for the year? Description Total Amount Allocated to Georgio Sales Revenue Ordinary Business Income
ABC LLC, a calendar year partnership, incurred $8, 600 of organizational costs and $10,000 of syndication costs before the active business began on July 1, Year 1. How much can ABC LLC deduct on its initial - year return?
During the current year, Flora, a married individual who files a joint return, reports the following items of income and loss: Requirements What is Flora's AGI for the year? b. What is the amount of suspended losses ( Requirement a. What is Flora's AGI for the year? Flora's AGI for the year а. is Data Table Salary $138,000 Activity X (passive) Activity Y (rental real estate, nontrade or business) Activity Z (rental real estate, nontrade or business) Flora 8,000 (26,000) (14,000) actively participates in activities Y and Z and owns 100% of both Y and Z.
Respond to the following independent situations: Required: a. Mario and Tricia, husband and wife, filing jointly, earn $30o0,000 in salaries and do not have any net investment income. b. Mario and Tricia, husband and wife, filing jointly, earn $214,500 in salaries and $50,000 in capital gains, $50,000 in dividends, and $25,000 in savings interest for a total modified AGI of $339,50o. c. Mario and Tricia, husband and wife, filing jointly, earn $336,000 in salaries and $56,000 in capital gains for a total modified AGI of $392,000. How much in surtax will Mario and Tricia be assessed on their Form 1040 for 2020? Amount of surtax a. b. C.
Ashanti Partnership, a mining equipment business, states in its partnership agreement that Jonah and Tutu agree to split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide Jonah with a $15,000 guaranteed payment for services he provides to the partnership. Ashanti Partnership reports the following revenues, expenses, gains, losses, and distributions for its current taxable year: Gain on Sale of Land* $ 4,000 MACRS Depreciation $ 7,500 Charitable Contributions $ 12,500 Sales $ 40,000 Interest Income $ 500 Cost of Goods Sold $ 32,000 Section 179 Expense $ 7,000 Tax-Exempt Income $ 2,000 Other Income $ 5,000 *The land is a Section 1231 asset.Answer the following questions:A. Compute Jonah's share of ordinary income (loss) and separately stated items. Include his self-employment income as a separately stated item.B. Compute Jonah's self-employment income but assume Ashanti Partnership is a limited partnership and Jonah is a…
Juan Diego began the year with a tax basis in his partnership interest of $53,000. During the year, he was allocated $21,200 of partnership ordinary business income, $74,200 of §1231 losses, and $31,800 of short-term capital losses and received a cash distribution of $53,000. b. If any deductions or losses are limited, what are the carryover amounts, and what is their character?
Lopez and Gomez are members in an LLC that reports net income of $139,000. An agreement states that Lopez receives a $20,900 salary allowance and Gomez receives a $50,900 salary allowance. Any remaining income or loss is to be shared by Lopez and Gomez in a 2:3 ratio (in percents: Lopez, 40%; Gomez, 60%). 1. Determine each member's share of net income. 2. Prepare the entry to record the closing of Income Summary. Hint: The business is a limited liability company (LLC), so equity accounts are "Lopez, Member Equity" and "Gomez, Member Equity". Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine each member's share of net income. Allocation of each member's Income Lopez Gomez Net income Salary allowances Balance of income Balance allocated Balance of income Shares of the members
Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively. UpAHill Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Sales revenue Cost of goods sold Salary to owners Jack and Jill Employee wages Depreciation expense Miscellaneous expenses. Interest income (related to business) Qualified dividend income Overall net income Ordinary income Allocated wages Unadjusted basis of qualified property Year 1 $ 175,000 (60,000) (40,000) a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2 based on the information above? Assume that UpAHill Corporation has $100,000 of qualified property (unadjusted basis) in both years. Year 1 (15,000) (10,000) (7,500) 2,000 500 $ 45,000 Year 2 $ 310,000 (85,000) (50,000) (20,000) (15,000) (9,000) 2,500 1,000 $ 134,500 Jack Year 2 Year 1 Jill Year 2 b. Complete UpAHill's Form 1120-S, Schedule K, for year 1. Complete Jill's Form 1120-S Schedule K for…
For each of the following please identify if the business is a Corporation, Proprietorship, or Partnership.1) Georgette Green begins a pet care busines by invesgting $5,000. At the end of the year, she wil include the business income or lss on her personal income tax return.2)Additional paid-in-capital for the Trailblazer Compay is $8 per share3)Bronson Company presents a statement of Retained Earnings in it's financial statements at year end.4) Jean Johnoson home health care business does not have liability separate from herself.5) Grand Canyon Company's retained earnings balance is 5 million6) Jim Moore and his daughter, Jenna Moore, agree that 60% of their company's net profit will go to Jim and 40% of the net profit will go to Jenna.7) Michael Johnson and Joaquin Nunoz each invested $10,000 in their computer consulting business, and received shares of the company's stock in exhange for their investments. (Side note: Will you also explain how they received shares from a business…
[The following information applies to the questions displayed below.] Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of Falcons Corporation. In year 1, Julio and Milania each received distributions of $10,000 from Falcons Corporation. Sales revenue Cost of goods sold Salary to owners Julio and Milania Employee wages Depreciation expense Section 179 expense Falcons Corporation (an S Corporation) Income Statement December 31, Year 1 and Year 2 Interest income (related to business income) Municipal bond income. Government fines Overall net income. Distributions Show Transcribed Text Ordinary Income Section 179 expense a. What amount of ordinary income and separately stated items are allocated to them for year 1 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Municipal bond income Unadjusted basis of qualified property Allocated wages Distributions Qualified business income…

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