I need help with this problem, Thank you
The AB partnership, a cash method, calendar year partnership, had the following income and expenses for the past calendar year:
(1) Gross income from business operations $130,000
(2) Expenses deductible under § 162(a) 40,000
(3) Depreciation on machinery (calculated under the 200% declining balance method) 30,000
(4) Charitable gifts 20,000
(5) 30,000 Gain on sale of equipment used in the partnership business, $20,000 of which is ordinary under § 1245(a), and $10,000 of which is §1231 Sales Price 40,000, Basis, 10,000, Original Cost 20,000
(6) Short-term capital gain on stock sale 10,000. Sales Price 110,000, Basis 100,000
(7) Interest on tax exempt bonds 40,000
(8) Dividends on stock 20,000
(9) Gain on the sale of land held for 4 years by the partnership for investment purposes 100. Sales price 300,000, basis 200,000
Balance sheet Data
Beginning Balance Sheet
Cash |
200,000 |
|
Stock |
300,000 |
|
Land |
400,000 |
|
Equipment |
500,000 |
|
Accum Deprec |
100000 |
|
TE Bonds |
100,000 |
|
Nonrecourse Debt |
40,000 |
|
Recourse Debt |
60,000 |
|
A Capital |
650,000 |
|
B Capital |
650,000 |
|
1,500,000 |
1,500,000 |
A and B use the cash method and the calendar year. Assume the following.
A is a general Partner and B is a limited partner.
Profit Ratio |
Loss Ratio |
Capital Ratio |
|
A |
60 |
40 |
50 |
b |
40 |
60 |
50 |
AB partnership | |||||
For the calendar year | |||||
$ | |||||
Revenue | Gross income | 130000 | |||
Short-term capital gain on stock sale | 10000 | ||||
Dividends on stock | 20000 | ||||
Gain on the sale of land (Attach form 4797) | 100000 | ||||
Charitable gifts | 20000 | ||||
Sub Total | 280000 | ||||
Expenses | Expenses | 40000 | |||
Depreciation on machinery (Attach Form 4562) | 30000 | ||||
Interest on tax exempt bonds | 40000 | ||||
Sub Total | 110000 | ||||
Net Income | 170000 | ||||
Profit Ratio | |||||
A | 60 | ||||
B | 40 | ||||
Share in Profit | |||||
A | 102000 | ||||
B | 68000 | ||||
Balance Sheet | |||||
Cash | 604000 | ||||
Stock | 300000 | ||||
Land | 170000 | ||||
Equipment | 500000 | ||||
Accum Deprec | 70000 | ||||
TE Bonds | 100000 | ||||
Nonrecourse Debt | 40000 | ||||
Recourse Debt | 60000 | ||||
A Capital | 752000 | ||||
B Capital | 752000 | ||||
1674000 | 1674000 | ||||
I need help with this problem, Thank you The AB partnership, a cash method, calendar year...
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