Question

partnerships Question 18 of 75. Betty and Alan,each own 25% of partnership BAB. On October 15, 2016. Detty partner. C October 15, 2016. O October 16, 2017 O January 31, 2017, O The partnership does not terminate. On October 16, 2017, Alan sells his interest to Bob. When does the partnership terminate sells her interest to Bob, who is 50% Mark for follow up Question 19 of 75. Which of the following is a self-employment item listed on Schedule K of Form 1 O Section 179 expense deduction. O Charitable contributions. O Profit (loss) from farming O Net capital gain loss) Mark for follow up Question 20 of 75. For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000 interest income, $600 charitable contribution, and $18,0005179 deduction. Pat is a general partner who owns a 20% interest in OPC. She recoivea sa o guaranteed payment and SO distributions during the year. What is the amount of Pat's self-employment income from OPQ O $4,680 O $4,800 O $8,400 O$16,800 LJMark for follow up Question 21 of 75

Answer 1

1) For a partnership to be called a partnership, there must be two members but on October 16,2017, only one member was left, hence the answer is October 16,2017

2) Profit(loss) from farming is a self-employment item listed in Schedule K.

3) OPQ has a profit of 42,000, deductions equal 18,000 ,net income is then 42000 - 18000 = 24,000

Pat has a 20% interest of 24000 = 4,800

Pat also has gurantee payment of 12000

Pat's total self employment income is 12000 + 4800 = 16,800

Hence the answer is 16,800