Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 10, Problem 9P
To determine
Introduction:
Income to be reported by L and J.
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L&J Interests is a partnership with two equal partners, Linda and Joanne. The partnership has income for the year of $44,400 before guaranteed payments. Guaranteed payments of $26,640 are paid to Linda during the year.
Calculate the amount of income that should be reported by Linda and Joanne from the partnership for the year.
Linda should report income of:
$
Joanne should report income of:
$
Lori and Peter enter into a partnership and decide to share profits and losses as follows:
1 The first allocation is a salary allowance with Lori receiving $16,000 and Peter receiving $18,000.
2 The second allocation is 15% of the partners capital balances at year end. On December 31, 2019 the capital balances for Lori and Peter are $90,000 and $20,000, respectively.
3. Any remaining profit or loss is allocated equally. For the year ending December 31, 2019, the partnership reported net Income of $55,000 What is Lori's share of the net income?
A) $29,500
B) $20,250
C) $31,750
D) $23,250
Based on the above information, kindly answer the following:
1. In the profit distribution schedule, the salary allowance of Tom will be?
2. Of the P1,404,000 net profit of the partnership, the share of Rey will be?
3. In the profit distribution schedule, the total salary allowance will be? Please answer complete required1,2,3
Chapter 10 Solutions
Income Tax Fundamentals 2020
Ch. 10 - Which of the following may not be treated as a...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQCh. 10 - Abigail contributes land with an adjusted basis of...Ch. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - Prob. 10MCQ
Ch. 10 - Prob. 11MCQCh. 10 - Prob. 12MCQCh. 10 - Prob. 13MCQCh. 10 - Prob. 14MCQCh. 10 - Prob. 15MCQCh. 10 - Prob. 16MCQCh. 10 - Kendra is an attorney and owns 60 percent of a law...Ch. 10 - Prob. 18MCQCh. 10 - In 2019, Gloria, a single taxpayer, receives a...Ch. 10 - Prob. 20MCQCh. 10 - Prob. 21MCQCh. 10 - Prob. 22MCQCh. 10 - Prob. 23MCQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16P
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