Suz-Anna is an partnership with two equal partners, Suzy and Anna. This year, Suz-Anna recorded the following items of income and expense: Sales revenue $ 500,000 Interest income 6,000 Long-term capital gain 10,000 Cost of goods sold (250,000) Salary and wages (75,000) Other operating expenses (55,000) Suz-Anna distributed $25,000 to each of its partners during the year. If Suzy has no other sources of income, what is her gross income for the year? Answer with workings

Suz-Anna is an partnership with two equal partners, Suzy and Anna. This year, Suz-Anna recorded the following items of income and expense: Sales revenue $ 500,000 Interest income 6,000 Long-term capital gain 10,000 Cost of goods sold (250,000) Salary and wages (75,000) Other operating expenses (55,000) Suz-Anna distributed $25,000 to each of its partners during the year. If Suzy has no other sources of income, what is her gross income for the year? Answer with workings

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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Question

Suz-Anna is an partnership with two equal partners, Suzy and Anna. This year, Suz-Anna recorded the following items of income and expense:

Sales revenue	$ 500,000
Interest income	6,000
Long-term capital gain	10,000
Cost of goods sold	(250,000)
Salary and wages	(75,000)
Other operating expenses	(55,000)

Suz-Anna distributed $25,000 to each of its partners during the year. If Suzy has no other sources of income, what is her gross income for the year?

Answer with workings

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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