The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,600,and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnershipreports the following results:Sales revenueGain on sale of land (51231)Cost of goods soldDepreciation-MACRS$ 82,0006,400(37,500)(13,800)(17,900)Employee wages(4,200)Cash charitable contributionsMunicipal bond interestOther expenses4,050(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-employincome (loss).Note: Round your intermediate computations and final answers to the nearest whole dollar amount.DescriptionSeparately Stated Items on Schedule K-1:TotalAmountRequired A1Allocatedto Gary4

Partnership income allocation involves distributing profits, losses, and various income components…

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)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 80DC

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The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $19,000, 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 $ 83,200 Gain on sale of land (§1231) 6,300 Cost of goods sold (40,700) Depreciation—MACRS (16,600) Employee wages (16,600) Cash charitable contributions (3,400) Municipal bond interest 5,600 Other expenses (4,800) 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). b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. PLEASE…
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100, 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 (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 91,500 7,500 (53,500) (15,600) (11,100) (5,300) 5,450 (5,100) 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). Complete this question by entering your answers in the tabs below. Required A1 Required A2 How much ordinary income (loss) is allocated to Gary for the year? Note: Round your intermediate computations to the nearest…
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,000, 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 (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 70,000 $ 8,000 $ (38,000) $ (9,000) $ (14,000) $ (3,000) $ 2,000 $ (2,000) (Negative amounts should be indicated by a minus sign.) b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, 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 ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) 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). Req A1 Complete this question by entering your answers in the tabs below. Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) Description Separately Stated Items on Schedule K-1: §1231 gains Cash charitable contributions Compute Gary's share of separately stated…
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100. 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 ($1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses 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? $91,500 7,500 (53,500) (15,600) (11,100) (5,300) 5,450 (5,100) 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). How much ordinary income (loss) is allocated to Gary for the year? Note: Round your intermediate computations to the nearest whole dollar amount. Ordinary income (loss) Description Required At Separately Stated Items…
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! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, 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 (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. c. What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time? Self-employment income (loss)
! Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, 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 (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
The partnership agreement of AAA, BBB and CCC provides for the year-end allocation of net income in the following order: • First, AAA is to receive 10% of net income up to P100,000 and 20% over P100,000 Second, BBB and CCC each are to receive 5% of the remaining income over P150,000 • The balance of income is to be allocated equally among the three partners The partnership's 2009 net income was P250,000 before any allocations to partners. What amount should be allocated to BBB?
The profit and loss sharing agreement for the A, B, and C partnership provides that each partner receive a bonus of 3% on the original amount of partnership net income if there is a net income. A and B receive a salary allowance of P10,500 and P15,500, respectively. C has an average capital balance of P300,000, and receives a 10% interest allocation on the amount of his average capital account balance. Residual profits and losses are allocated to A, B, and C in their respective ratios of 1:1:2. Compute the share of the net income for each partner for each of the following partnership net income/losses. Partnership Net Income 50,000 Partnership Net Loss 20,000
The partnership agreement of EE, KK, and VV provides for the year-end allocation of net income in the following order: First, EE is to receive 10 percent of net income up to P100,000 and 20 percent over P100,000. Second, KK and VV each are to receive 5 percent of the remaining income over P150,000. The balance of income is to be allocated equally among the three partners. The partnership’s 2005 net income was P250,000 before any allocations to partners. What amount should be allocated to EE? I only need the solution, the correct answer is 108,000.