Angel has a one-fourth and Brian has a three-fourths interest in a partnership that operates a toy manufacturing company. The partnership books disclose the following information for the current calendar year: Sales $235,000 Sales returns and allowances 10,000 Beginning Inventory 50,000 Purchases 50,000 Manufacturing cost of labor and supplies 105,000 Ending Inventory 61,000 Salaries 26,000 Guaranteed payments to partners($8,400/each) 16,800 Rent expense 17,000 Interest expense 550 Taxes expense 8,500 Bad debt expense 1,000 Repairs expense 3,000 Depreciation expense (tax depreciation) 2,470 Utilities expense 1,680 Net long-term capital gain (sold computer) 600
Angel has a one-fourth and Brian has a three-fourths interest in a
|
Sales |
$235,000 |
|
Sales returns and allowances |
10,000 |
|
Beginning Inventory |
50,000 |
|
Purchases |
50,000 |
|
|
105,000 |
|
Ending Inventory |
61,000 |
|
Salaries |
26,000 |
|
Guaranteed payments to partners($8,400/each) |
16,800 |
|
Rent expense |
17,000 |
|
Interest expense |
550 |
|
Taxes expense |
8,500 |
|
|
1,000 |
|
Repairs expense |
3,000 |
|
|
2,470 |
|
Utilities expense |
1,680 |
|
Net long-term |
600 |
Compute the partnership ordinary income?
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