PeeDee and Pete each owns 50% of Pirates GP. Pirates made no distributions to its partners this year. Compute the partnership's ordinary (non-separately stated) income and indicate which items must be separately stated instead of included in ordinary income, based on the following financial information: Sales revenue Dividend income Sec. 1231 gain Cost of goods sold Other operating expenses $ 500,000 6,000 10,000 (250,000) (55,000) O Ordinary income, $205,000; Dividend income is separately stated. O Ordinary income, $205,000; Dividend income and Sec. 1231 gain are separately stated. O Ordinary income, $211,000; nothing is separately stated. O Ordinary income, $195,000; Dividend income and Sec. 1231 gain are separately stated.
PeeDee and Pete each owns 50% of Pirates GP. Pirates made no distributions to its partners this year. Compute the partnership's ordinary (non-separately stated) income and indicate which items must be separately stated instead of included in ordinary income, based on the following financial information: Sales revenue Dividend income Sec. 1231 gain Cost of goods sold Other operating expenses $ 500,000 6,000 10,000 (250,000) (55,000) O Ordinary income, $205,000; Dividend income is separately stated. O Ordinary income, $205,000; Dividend income and Sec. 1231 gain are separately stated. O Ordinary income, $211,000; nothing is separately stated. O Ordinary income, $195,000; Dividend income and Sec. 1231 gain are separately stated.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PeeDee and Pete each owns 50% of Pirates GP. Pirates made no distributions to its partners this year, Compute the
partnership's ordinary (non-separately stated) income and indicate which items must be separately stated instead of included
in ordinary income, based on the following financial information:
Sales revenue
Dividend income
Sec. 1231 gain
Cost of goods sold
Other operating expenses
$
500,000
6,000
10,000
(250,000)
(55,000)
Ordinary income, $205,000; Dividend income is separately stated.
O Ordinary income, $205,000; Dividend income and Sec. 1231 gain are separately stated.
O Ordinary income, $211,000; nothing is separately stated.
O Ordinary income, $195,000; Dividend income and Sec. 1231 gain are separately stated.
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