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Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their begin basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: Income $336,123 Interest income 1,259 4,586 Dividend income (qualified) Long-term capital gains Total revenue 13,458 $355,426 Expenses Salaries and wages (nonpartners) Guaranteed payments Williams $ 47,000 75,000 50,000 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) 41,888

Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their begin basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: Income $336,123 Interest income 1,259 4,586 Dividend income (qualified) Long-term capital gains Total revenue 13,458 $355,426 Expenses Salaries and wages (nonpartners) Guaranteed payments Williams $ 47,000 75,000 50,000 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) 41,888

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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What is the ending basis for Phil Williams and Liz Johnson? (Round your intermediate calculations to nearest whole dollar value.)
Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: $336,123 1,259 4,586 13,458 $355,426 Income Interest income Dividend income (qualified) Long-term capital gains Total revenue Expenses Salaries and wages (nonpartners) Guaranteed payments $ 47,000 Williams 75,000 50,000 41,888 5,220 15,548 15,257 5, 254 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) Interest expense Taxes and licenses Meals (100%) Auto Insurance (nonpartner health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses 6,000 2,800 1, 200 2,500 500 $268,167 Net income $ 87, 259
Transcribed Image Text:Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: $336,123 1,259 4,586 13,458 $355,426 Income Interest income Dividend income (qualified) Long-term capital gains Total revenue Expenses Salaries and wages (nonpartners) Guaranteed payments $ 47,000 Williams 75,000 50,000 41,888 5,220 15,548 15,257 5, 254 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) Interest expense Taxes and licenses Meals (100%) Auto Insurance (nonpartner health) Accounting and legal Repairs Charitable contributions Payroll penalties Total expenses 6,000 2,800 1, 200 2,500 500 $268,167 Net income $ 87, 259
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