51) The AB Partnership reports the following items for its current tax yearItemIncomeAmountOperating incomeRental incomeInterest income:$90,00015,000Tax-exempt municipal bondsCorporate bondsSec, 1231 gainSec. 1245 gainLong-term capital gain2,0004,00020,00018,0007,000ExpensesRental expensesSalaries paid to employees (not partners)Charitable contributions12,00030,0005,0003,000Interest paid related to borrowings used to finance municipal bonds(1) What is the AB Partnership's ordinary income for the current year?(2) What are the AB Partnership's separately stated items for the current year?

1) Ordinary business income includes any earnings your company makes through daily operations.…

Answered: The AB Partnership reports the Item…

The AB Partnership reports the Item Income Operating income Rental income Interest income: Tax-exempt municipal bc Corporate bonds Sec, 1231 gain Sec. 1245 gain

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

51) The AB Partnership reports the following items for its current tax year
Item
Income
Amount
Operating income
Rental income
Interest income:
$90,000
15,000
Tax-exempt municipal bonds
Corporate bonds
Sec, 1231 gain
Sec. 1245 gain
Long-term capital gain
2,000
4,000
20,000
18,000
7,000
Expenses
Rental expenses
Salaries paid to employees (not partners)
Charitable contributions
12,000
30,000
5,000
3,000
Interest paid related to borrowings used to finance municipal bonds
(1) What is the AB Partnership's ordinary income for the current year?
(2) What are the AB Partnership's separately stated items for the current year?

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