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: $ 340,000 3,300 1,200 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments (120,000) (75,000) (28,000) (20,000) (4,500) Miscellaneous expenses Overall net income $ 97,000 (Leave no answer blank. Enter zero if applicable.) a-1. How much ordinary business income (loss) would Firewalker report for the current year? a-2. What separately stated items will it report on its return for the year? Complete this question by entering your answers in the tabs below. Req a1 Req a2 How much ordinary business income (loss) would Firewalker report for the current year? Ordinary business income (loss)
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: $ 340,000 3,300 1,200 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments (120,000) (75,000) (28,000) (20,000) (4,500) Miscellaneous expenses Overall net income $ 97,000 (Leave no answer blank. Enter zero if applicable.) a-1. How much ordinary business income (loss) would Firewalker report for the current year? a-2. What separately stated items will it report on its return for the year? Complete this question by entering your answers in the tabs below. Req a1 Req a2 How much ordinary business income (loss) would Firewalker report for the current year? Ordinary business income (loss)
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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