IN JANUARY, BECKY (20%), CHUCK (30%), AND DAWN (50%) ARE PARTNERS IN THE BCD PARTNERSHIP. DURING THE CURRENT YEAR, BCD REPORTS THE FOLLOWING RESULTS. ALL ITEMS OCCUR EVENLY THROUGHOUT THE YEAR UNLESS OTHERWISE INDICATED. ASSUME THE CURRENT YEAR IS NOT A LEAP YEAR. ORDINARY INCOME $120,000 LONG-TERM CAPITAL GAIN (RECOGNIZED SEPTEMBER 1) 18,000 SHORT-TERM CAPITAL LOSS (RECOGNIZED MARCH 2) 6,000 CHARITABLE CONTRIBUTION (MADE OCTOBER 1) 20,000 ASSUME THAT BECKY PURCHASES A 5% PARTNERSHIP INTEREST FROM CHUCK ON JULY 1 SO THAT BECKY AND CHUCK EACH OWN 25% FROM THAT DATE THROUGH THE END OF THE YEAR. WHAT ARE BECKY AND CHUCK'S DISTRIBUTIVE SHARES FOR THE CURRENT YEAR?
IN JANUARY, BECKY (20%), CHUCK (30%), AND DAWN (50%) ARE PARTNERS IN THE BCD PARTNERSHIP. DURING THE CURRENT YEAR, BCD REPORTS THE FOLLOWING RESULTS. ALL ITEMS OCCUR EVENLY THROUGHOUT THE YEAR UNLESS OTHERWISE INDICATED. ASSUME THE CURRENT YEAR IS NOT A LEAP YEAR. ORDINARY INCOME $120,000 LONG-TERM CAPITAL GAIN (RECOGNIZED SEPTEMBER 1) 18,000 SHORT-TERM CAPITAL LOSS (RECOGNIZED MARCH 2) 6,000 CHARITABLE CONTRIBUTION (MADE OCTOBER 1) 20,000 ASSUME THAT BECKY PURCHASES A 5% PARTNERSHIP INTEREST FROM CHUCK ON JULY 1 SO THAT BECKY AND CHUCK EACH OWN 25% FROM THAT DATE THROUGH THE END OF THE YEAR. WHAT ARE BECKY AND CHUCK'S DISTRIBUTIVE SHARES FOR THE CURRENT YEAR?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:IN JANUARY, BECKY (20%), CHUCK (30%), AND
DAWN (50%) ARE PARTNERS IN THE BCD
PARTNERSHIP. DURING THE CURRENT YEAR, BCD
REPORTS THE FOLLOWING RESULTS. ALL ITEMS
OCCUR EVENLY THROUGHOUT THE YEAR UNLESS
OTHERWISE INDICATED. ASSUME THE CURRENT
YEAR IS NOT A LEAP YEAR.
ORDINARY INCOME $120,000
LONG-TERM CAPITAL GAIN (RECOGNIZED
SEPTEMBER 1) 18,000
SHORT-TERM CAPITAL LOSS (RECOGNIZED MARCH
2) 6,000
CHARITABLE CONTRIBUTION (MADE OCTOBER 1)
20,000
ASSUME THAT BECKY PURCHASES A 5%
PARTNERSHIP INTEREST FROM CHUCK ON JULY 1
SO THAT BECKY AND CHUCK EACH OWN 25% FROM
THAT DATE THROUGH THE END OF THE YEAR.
WHAT ARE BECKY AND CHUCK'S DISTRIBUTIVE
SHARES FOR THE CURRENT YEAR?
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