Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the following revenue, expenses, gains, losses, and distributions: Cost of Goods Sold $ 85,000 Cash Distribution to Harry $ 15,000 Municipal Bond Interest $ 1,500 Short-Term Capital Gains $ 4,500 Employee Wages $ 40,000 Rent $ 10,000 Charitable Contributions $ 25,000 Sales $ 175,000 Repairs and Maintenance $ 5,000 Long-Term Capital Gains $ 12,000 Fines and Penalties $ 5,000 Guaranteed Payment to Lloyd $ 25,000 Given these items, calculate Lloyd's share of ordinary business income (loss) for the year? The correct answer should be $5000
Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the following revenue, expenses, gains, losses, and distributions: Cost of Goods Sold $ 85,000 Cash Distribution to Harry $ 15,000 Municipal Bond Interest $ 1,500 Short-Term Capital Gains $ 4,500 Employee Wages $ 40,000 Rent $ 10,000 Charitable Contributions $ 25,000 Sales $ 175,000 Repairs and Maintenance $ 5,000 Long-Term Capital Gains $ 12,000 Fines and Penalties $ 5,000 Guaranteed Payment to Lloyd $ 25,000 Given these items, calculate Lloyd's share of ordinary business income (loss) for the year? The correct answer should be $5000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the following revenue, expenses, gains, losses, and distributions:
| Cost of Goods Sold | $ 85,000 |
|---|---|
| Cash Distribution to Harry | $ 15,000 |
| Municipal Bond Interest | $ 1,500 |
| Short-Term |
$ 4,500 |
| Employee Wages | $ 40,000 |
| Rent | $ 10,000 |
| Charitable Contributions | $ 25,000 |
| Sales | $ 175,000 |
| Repairs and Maintenance | $ 5,000 |
| Long-Term Capital Gains | $ 12,000 |
| Fines and Penalties | $ 5,000 |
| Guaranteed Payment to Lloyd | $ 25,000 |
Given these items, calculate Lloyd's share of ordinary business income (loss) for the year?
The correct answer should be $5000
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