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b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Description Interest income Long-term capital gain Guaranteed payments Self-employment income Answer is not complete. Jhumpa $ 1,100 400 10,000 40,833 $ Stewart 1,100 $ 400 10,000 40,833 Kelly 1,100 400 30,833

b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Description Interest income Long-term capital gain Guaranteed payments Self-employment income Answer is not complete. Jhumpa $ 1,100 400 10,000 40,833 $ Stewart 1,100 $ 400 10,000 40,833 Kelly 1,100 400 30,833

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses (20,000) (4,500) Overall net income $ 97,000 Note: Leave no answer blank. Enter zero if applicable. Description Problem 09-64 Part b (Static) b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Interest income Long-term capital gain Guaranteed payments Self-employment income $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) 10,000 40,833 Answer is not complete. Jhumpa $ 1,100 400 $ Stewart 1,100 400 10,000 40,833 $ Kelly 1,100 400 30,833
Transcribed Image Text:Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses (20,000) (4,500) Overall net income $ 97,000 Note: Leave no answer blank. Enter zero if applicable. Description Problem 09-64 Part b (Static) b. How will Firewalker allocate ordinary business income and separately stated items to its partners? Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Interest income Long-term capital gain Guaranteed payments Self-employment income $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) 10,000 40,833 Answer is not complete. Jhumpa $ 1,100 400 $ Stewart 1,100 400 10,000 40,833 $ Kelly 1,100 400 30,833
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