John and Charlie are equal ownwe XYZ had sales of $400,000, Operting Expense Capital Gain of...

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John and Charlie are equal ownwe XYZ had sales of $400,000, Operting Expense Capital Gain of $20,000 and Long Term rs in XYZ

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Answer 1

Answer #1

	If XYZ is a Partnership
Sales	400,000.00
(-) Operating Expenses	(300,000.00)

Profits from Business	100,000.00	(A)

Capital Gains
Long Term Capital gain	20,000.00
Long Term Capital loss	(30,000.00)

Long term capital loss	(10,000.00)	(B)

Net Income of XYZ Enterprises	90,000.00

Share of John	45,000.00
Share of Charlie	45,000.00

Note: If XYZ is a corporation, this amount could not be shared between John and Charlie. Any profit or loss should be accounted as profit from business and to be distributed as divided or to be kept as retained earnings.

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Answer 2

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