xpenses, gains, and losses: enue ale of land (§1231) oods sold ion-MACRS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following
revenues, expenses, gains, and losses:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
§179 deduction*
Employee wages
Nondeductible fines and penalties
Municipal bond interest
Short-term capital gains
Guaranteed payment to Sandra
*Assume the §179 property placed in service limitation does not apply.
b. What are Georgio's separately stated items for the year?
Description
Separately Stated Items on Schedule K-1:
$ 92,000
19,500
(48,000)
(6,650)
(17,100)
(13,900)
(4,500)
7,000
5,250
(5,700)
Total
Amount
Allocated
to Georgio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9976f245-0987-4f53-92e6-265364542515%2F88a42df3-c33f-4ffa-99ff-bac69b220f93%2Fvs6slg_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following
revenues, expenses, gains, and losses:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
§179 deduction*
Employee wages
Nondeductible fines and penalties
Municipal bond interest
Short-term capital gains
Guaranteed payment to Sandra
*Assume the §179 property placed in service limitation does not apply.
b. What are Georgio's separately stated items for the year?
Description
Separately Stated Items on Schedule K-1:
$ 92,000
19,500
(48,000)
(6,650)
(17,100)
(13,900)
(4,500)
7,000
5,250
(5,700)
Total
Amount
Allocated
to Georgio
Expert Solution
Step 1
Answer :
Georgio's owns 10%
| Particular | Total amount | 10% allocated to Georgio |
| Separately stated items on schedule K-1 : | ||
| Section 1231 gain | $19,500 | $1950 |
| Section 179 deduction | ($17,100) | ($1710) |
| Short term capital gain | $5250 | $525 |
| Municipal bond interest * | $7,000 | $700 |
| Fine and penalties * | ($4500) | ($450) |
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education