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Note: Please show detailed calculations and explanations. Answers without showing calculations/explanations, will not receive credit. 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 Cash Distribution to Harry Municipal Bond Interest Short-Term Capital Gains Employee Wages Rent Charitable Contributions Sales Repairs and Maintenance Long-Term Capital Gains Fines and Penalties $91,500 $ 16,300 $2,800 $ 5,800 $41,300 $ 11,300 $ 26,300 $ 181,500 $6,300 $ 13,300 $ 6,300 Guaranteed Payment to Lloyd $ 26,300 Given these items, what amount of ordinary business income (loss) and what separately stated items should be allocated to each partner for the year? Hint: You should process this question in the following 4 steps: 1. Identify all separated items 2. Ordinary income Sum (All items) - sum (all separated items) 3. Allocate ordinary income to each partner using their partnership interest (50% in this case since there are only 2 and they are equal partner) 4. Allocate EACH separate item to each partner. Pay attention because there are items which will be allocated to only 1 partner and not the other

Note: Please show detailed calculations and explanations. Answers without showing calculations/explanations, will not receive credit. 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 Cash Distribution to Harry Municipal Bond Interest Short-Term Capital Gains Employee Wages Rent Charitable Contributions Sales Repairs and Maintenance Long-Term Capital Gains Fines and Penalties $91,500 $ 16,300 $2,800 $ 5,800 $41,300 $ 11,300 $ 26,300 $ 181,500 $6,300 $ 13,300 $ 6,300 Guaranteed Payment to Lloyd $ 26,300 Given these items, what amount of ordinary business income (loss) and what separately stated items should be allocated to each partner for the year? Hint: You should process this question in the following 4 steps: 1. Identify all separated items 2. Ordinary income Sum (All items) - sum (all separated items) 3. Allocate ordinary income to each partner using their partnership interest (50% in this case since there are only 2 and they are equal partner) 4. Allocate EACH separate item to each partner. Pay attention because there are items which will be allocated to only 1 partner and not the other

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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Note: Please show detailed calculations and explanations. Answers without showing calculations/explanations, will not receive credit. 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 Cash Distribution to Harry Municipal Bond Interest Short-Term Capital Gains Employee Wages Rent Charitable Contributions Sales Repairs and Maintenance Long-Term Capital Gains Fines and Penalties $91,500 $ 16,300 $2,800 $ 5,800 $41,300 $ 11,300 $ 26,300 $ 181,500 $6,300 $ 13,300 $ 6,300 Guaranteed Payment to Lloyd $ 26,300 Given these items, what amount of ordinary business income (loss) and what separately stated items should be allocated to each partner for the year? Hint: You should process this question in the following 4 steps: 1. Identify all separated items 2. Ordinary income Sum (All items) - sum (all separated items) 3. Allocate ordinary income to each partner using their partnership interest (50% in this case since there are only 2 and they are equal partner) 4. Allocate EACH separate item to each partner. Pay attention because there are items which will be allocated to only 1 partner and not the other
Transcribed Image Text:Note: Please show detailed calculations and explanations. Answers without showing calculations/explanations, will not receive credit. 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 Cash Distribution to Harry Municipal Bond Interest Short-Term Capital Gains Employee Wages Rent Charitable Contributions Sales Repairs and Maintenance Long-Term Capital Gains Fines and Penalties $91,500 $ 16,300 $2,800 $ 5,800 $41,300 $ 11,300 $ 26,300 $ 181,500 $6,300 $ 13,300 $ 6,300 Guaranteed Payment to Lloyd $ 26,300 Given these items, what amount of ordinary business income (loss) and what separately stated items should be allocated to each partner for the year? Hint: You should process this question in the following 4 steps: 1. Identify all separated items 2. Ordinary income Sum (All items) - sum (all separated items) 3. Allocate ordinary income to each partner using their partnership interest (50% in this case since there are only 2 and they are equal partner) 4. Allocate EACH separate item to each partner. Pay attention because there are items which will be allocated to only 1 partner and not the other
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