Question

This year, FGH Partnership generated $720,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. B. Identify the taxpayers who must pay tax on the partnership income, and determine how much income must be reported by each.

Mr. T Mrs. U V Inc. Ms. B Triad LLC Beta

Answer 1

Colul Given that Since paid llc and Beta are two equal partnere so $ 790,000 will be divided among too equality e;$360,000 Now Traid uc has there membery so traid share of profit ie $ 360,000 will be divided among? 343 member an their parent at interest md. t: 360,000 X 40% 144,000 Mys.U · 360,000 *35%126,000 v. Ine. : 360,000 X 259, : 90,000 Beta hoy one membea ie', MXB who sold 100% share so H5.B 360,000 X100% - 360,000 traid LLC & Beta will show its income of Nil ag it has been reported by itt membasy following encome reported by each . . M.T :144,000 Misiu 126,000 90,000 Mitsu MS.B Traid lle | Beta 360,000 NIL