Wade has a beginning basis in a partnership of $24,500. His share of Income and expense from the partnership consists of the following amounts: Ordinary income Guaranteed payment Long-term capital gain 51231 gain Charitable contributions $ 179 expense Cash distribution a. Self-employment Income b. Ending basis $ 44,950 13,050 Amount 16,700 4,450 Required: a. What Is Wade's self-employment Income? b. Calculate Wade's basis at the end of the year. 2,075 19,800 6,750
Wade has a beginning basis in a partnership of $24,500. His share of Income and expense from the partnership consists of the following amounts: Ordinary income Guaranteed payment Long-term capital gain 51231 gain Charitable contributions $ 179 expense Cash distribution a. Self-employment Income b. Ending basis $ 44,950 13,050 Amount 16,700 4,450 Required: a. What Is Wade's self-employment Income? b. Calculate Wade's basis at the end of the year. 2,075 19,800 6,750
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Wade has a beginning basis in a partnership of $24,500. His share of Income and expense from the partnership
consists of the following amounts:
Ordinary income
Guaranteed payment
Long-term capital gain
$1231 gain
Charitable contributions
$ 179 expense
Cash distribution
Required:
a. What Is Wade's self-employment Income?
b. Calculate Wade's basis at the end of the year.
a. Self-employment
income
b. Ending basis
$44,950
13,050
16,700
4,450
2,075
19,800
6,750
Amount
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT