Required: a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income floss)
Required: a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income floss)
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 80DC
Related questions
Question
![The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,600,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (51231)
Cost of goods sold
Depreciation-MACRS
$ 82,000
6,400
(37,500)
(13,800)
(17,900)
Employee wages
(4,200)
Cash charitable contributions
Municipal bond interest
Other expenses
4,050
(5.000)
Note: Negative amounts should be indicated by a minus sign.
Required:
a-1. How much ordinary income (loss) is allocated to Gary for the year?
a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income
(loss).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfe90c1a-402d-4732-aba9-b8492dc688c9%2Fab04a963-2a74-440a-ac95-e2a036993088%2F3zovqm9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,600,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (51231)
Cost of goods sold
Depreciation-MACRS
$ 82,000
6,400
(37,500)
(13,800)
(17,900)
Employee wages
(4,200)
Cash charitable contributions
Municipal bond interest
Other expenses
4,050
(5.000)
Note: Negative amounts should be indicated by a minus sign.
Required:
a-1. How much ordinary income (loss) is allocated to Gary for the year?
a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income
(loss).
![Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employ
income (loss).
Note: Round your intermediate computations and final answers to the nearest whole dollar amount.
Description
Separately Stated Items on Schedule K-1:
Total
Amount
Required A1
Allocated
to Gary
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfe90c1a-402d-4732-aba9-b8492dc688c9%2Fab04a963-2a74-440a-ac95-e2a036993088%2F0apy2p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employ
income (loss).
Note: Round your intermediate computations and final answers to the nearest whole dollar amount.
Description
Separately Stated Items on Schedule K-1:
Total
Amount
Required A1
Allocated
to Gary
4
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