Question

Required Information Problem 20-61 (LO 20-4) The following information applies to the questions displayed below The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $19.000 and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (51231) Cost of goods sold Depreciation- CRS Deployee wages Cash charitable contributions Municipal bond interest Other expenses $ 82,200 $ €, 300 $140,700) $18.600) $ 16, 600) $ (3,400) $ 5,600 $ 14.800) (Negative amounts should be Indicated by a minus slgn.) Problem 20-61 Part-a -1. How much ordinary Income (loss) is allocated to Gary for the year? 6-2 Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment Income foss) Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self- employment income (los). (Round your intermediate computations and final answers to the nearest whole dollar amount.) Description Total Amount Allocated to Gary Separately stated items on Schedule Self-employment income 1: 12,475 Guaranteed payment 19.000

Answer 1

ANSWER

Computation of G&P General Partnership Income
Sales Revenue		$83,200
Less: Cost of Goods Sold	$40,700
Depreciation	$16,600
Wages	$16,600
Other expense	$4,800
guaranteed Payment	$19,000	-$97,700
Ordinary income( Loss)		-$14,500
a-1. Computation of allocated ordinary income (Loss) to Gray
Gay's Share of Ordinary Loss ( -$14,500*45/100)= ($6,525)
a.2. Computation of Gray's share of Separate Item
guaranteed Payment	$19,000
Net Income($19000-$6,525)	$12,475

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