Aiko, Lani, and Charlie own the 3-Star Partnership, sharing profits and losses 20:50:30. During the current...
Aiko, Lani, and Charlie own the 3-Star Partnership, sharing profits and losses 20:50:30. During the current year, 3-Star has total gross income of $500,000 and total allowable deductions of $300,000. How should each of the following taxpayers account for 3-Star's results? Explain.
a. 3-Star Partnership
b. Aiko
c. Lani
d. Charlie
Homework Answers
Answer:-
a) 3-star partnership = 500000-300000 =$ 200000
b)Aiko = 200000*(20/100) =$ 40000
c) Lani = 200000*(50/100) = $100000
d)Charlie= 200000*(30/100) = $60000
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