Question

Andy, Azim, and Ashwin operate the Triple-A Steak House, a popular restaurant and bar. The three, who have been friends since childhood, are equal partners in the establishment. For the year, Triple-A reports the following: Sales revenues $811,000 Short-term capital gains 21,000 Short-term capital losses (11,400) Business expenses (580,000) Charitable contributions (8,400) Taxable income $232,200 Since Andy, Azim, and Ashwin are equal partners, the Triple-A partnership will report the following amounts to each partner: Taxable ordinary income $ Short-term capital gain $ Short-term capital loss $ Charitable contributions $

Answer 1

Answer:

Ordinary taxable income of partnership = Sales revenue - Business expenses
=811000-580000
=231000

Particulars	Total	Partner Mr. Andy (Total/3)	Partner Mr. Azim (Total/3)	Partner Mr. Ashwin (Total/3)
Taxable Ordinary Income	231000	77000	77000	77000
Short-term capital gain	21000	7000	7000	7000
Short-term capital loss	(11400)	(3800)	(3800)	(3800)
Charitable expenses	(8400)	(2800)	(2800)	(2800)