Paul and Wayne equally own PW Partnership. Paul's basis was $30,000 and Wayne's basis was $22,000 at the beginning of the year. PW Partnership had the following income and expense items: Sales $ 330,000 Cost of goods sold 220,000 Guaranteed payment to Paul 40,000 Rent expense 24,000 Depreciation 33,000 Interest expense 4,000 Tax-exempt income 3,000 Health insurance premiums for Paul 3,600 Health insurance premiums for Wayne 3,600 PW Partnership's non-financial information is as follows: Name: PW Partnership Address: 5 Furniture Street, Anywhere, NC 28777 EIN: 56-1234567 Date Partnership Began: 01/01/10 Business Code: 442110 Principal Business Activity: Retail Principal Product or Service: Furniture Follows the Cash Method of Accounting Chapter 14, TRP 14-1 Part c c. Calculate Wayne’s basis in his partnership interest.
Paul and Wayne equally own PW Partnership. Paul's basis was $30,000 and Wayne's basis was $22,000 at the beginning of the year. PW Partnership had the following income and expense items: Sales $ 330,000 Cost of goods sold 220,000 Guaranteed payment to Paul 40,000 Rent expense 24,000 Depreciation 33,000 Interest expense 4,000 Tax-exempt income 3,000 Health insurance premiums for Paul 3,600 Health insurance premiums for Wayne 3,600 PW Partnership's non-financial information is as follows: Name: PW Partnership Address: 5 Furniture Street, Anywhere, NC 28777 EIN: 56-1234567 Date Partnership Began: 01/01/10 Business Code: 442110 Principal Business Activity: Retail Principal Product or Service: Furniture Follows the Cash Method of Accounting Chapter 14, TRP 14-1 Part c c. Calculate Wayne’s basis in his partnership interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Paul and Wayne equally own PW
| Sales | $ 330,000 |
|---|---|
| Cost of goods sold | 220,000 |
| Guaranteed payment to Paul | 40,000 |
| Rent expense | 24,000 |
| 33,000 | |
| Interest expense | 4,000 |
| Tax-exempt income | 3,000 |
| Health insurance premiums for Paul | 3,600 |
| Health insurance premiums for Wayne | 3,600 |
PW Partnership's non-financial information is as follows:
- Name: PW Partnership
- Address: 5 Furniture Street, Anywhere, NC 28777
- EIN: 56-1234567
- Date Partnership Began: 01/01/10
- Business Code: 442110
- Principal Business Activity: Retail
- Principal Product or Service: Furniture
- Follows the Cash Method of Accounting
Chapter 14, TRP 14-1 Part c
c. Calculate Wayne’s basis in his partnership interest.
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