Which one of the following is not a deductible expense in computing partnership ordinary income? a. ...
Which one of the following is not a deductible expense in computing partnership ordinary income?
a. Guaranteed payments to partners
b. Salaries and wages paid to persons who are not partners
c. Investment interest
d. Contributions to employee benefit plans
e. All of the above are deductible in computing partnership ordinary income
Homework Answers
| Investment interest is not a deductible expense in computing partnership ordinary income | |||||||||
| Option C is correct | |||||||||
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Which one of the following is not a
deductible expense in computing partnership ordinary income?
a. ...
With regard to fringe benefits offered to partners, which of the following is correct? a. partnership-paid...
With regard to fringe benefits offered to partners, which of the following is correct? a. partnership-paid insurance premiums provided as compensation for services rendered to the partnership are generally treated as Section 707 (c) guaranteed payments to the recipient partner, b. Partners are treated the same as garden variety employees for all fringe benefit purposes, c. All partnership-paid fringe benefits are federal income tax free for partners, d. All partnership-paid fringe benefits are fully taxable for partners
Which of the following is a false statement? A. Compensation payments create ordinary income for the...
Which of the following is a false statement? A. Compensation payments create ordinary income for the recipient employee and deductible compensation expense for the paying employer. B. Expatriates are U.S. citizens who live and work overseas. C. U.S. citizens working overseas who take the foreign earned income tax exclusion may also claim the foreign tax credit (FTC) to offset foreign income taxes on the same income. D. All of the above are correct statements.
Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of...
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Hoki Poki, a cash-method general partnership, recorded the following items for its current tax year: Rental real estate...
Hoki Poki, a cash-method general partnership, recorded the following items for its current tax year: Rental real estate income $3,000 Sales revenue 82,000 $ 5,000 13,000 $(33,000) $ (18,000) (8,000) $ (5,000) $(15,000) S1245 recapture income Interest income Cost of goods sold Depreciation-MACRS Supplies expense Employee wages Investment interest expense Partner's medical insurance premiums paid by Hoki Poki $ (7,000) As part of preparing Hoki Poki's current-year return, identify the items that should be included in computing its ordinary business...
Which of the following is false regarding a guaranteed payment? It is recognized as income by...
Which of the following is false regarding a guaranteed payment? It is recognized as income by the recipient partner in the taxable year received It is either a deductible expense or a capital expenditure to the partnership. It is ordinary income to the partner receiving the payment. It is determined without regard to partnership income. It is added to a partner's distributive share of ordinary income in calculating self-employment income.
2. James, Stewart, and Kelly are all one-third partners in the capital and profits of Firewall...
2. James, Stewart, and Kelly are all one-third partners in the capital and profits of Firewall general partnership. In addition to their normal share of the partnership's annual income, James and Stewart receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewall's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall...
Based only on the example provided, fil out the form below with the ordinary income and...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
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[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
This year, FGH Partnership generated $690,000 ordinary business income. FGH has two equal partners: Triad LLC...
This year, FGH Partnership generated $690,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. B. Identify the taxpayers who must pay tax on the partnership income, and determine how...
This year, FGH Partnership generated $720,000 ordinary business income. FGH has two equal partners: Triad LLC...
This year, FGH Partnership generated $720,000 ordinary business
income. FGH has two equal partners: Triad LLC and Beta, an S
corporation. Triad LLC has three members: Mr. T, who owns a 40
percent interest; Mrs. U, who owns a 35 percent interest; and V
Inc., which owns a 25 percent interest. Beta has 100 shares of
outstanding stock, all of which are owned by Ms. B. Identify the
taxpayers who must pay tax on the partnership income, and determine
how...
This year, FGH Partnership generated $800,000 ordinary business income. FGH has two equal partners: Triad LLC...
This year, FGH Partnership generated $800,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. B. Identify the taxpayers who must pay tax on the partnership income, and determine how...
Bryan and Gayle are equal partners in BG Partnership. The partnership reports the following items of income and expense Ordinary Income from operations Interest income Long-term capital gains 5 179 expense Charitable contributions s 17,500 6,800 32,e00 50,000 5,e00 a. Which of these items are considered separately stated items? on what form will these items be reported to the partners? b. Where will these amounts be reported by the partners? Complete this question by entering your answers in the tabs...
Hoki Poki, a cash-method general partnership, recorded the following items for its current tax year: Rental real estate income $3,000 Sales revenue 82,000 $ 5,000 13,000 $(33,000) $ (18,000) (8,000) $ (5,000) $(15,000) S1245 recapture income Interest income Cost of goods sold Depreciation-MACRS Supplies expense Employee wages Investment interest expense Partner's medical insurance premiums paid by Hoki Poki $ (7,000) As part of preparing Hoki Poki's current-year return, identify the items that should be included in computing its ordinary business...
Which of the following is false regarding a guaranteed payment? It is recognized as income by the recipient partner in the taxable year received It is either a deductible expense or a capital expenditure to the partnership. It is ordinary income to the partner receiving the payment. It is determined without regard to partnership income. It is added to a partner's distributive share of ordinary income in calculating self-employment income.
2. James, Stewart, and Kelly are all one-third partners in the capital and profits of Firewall general partnership. In addition to their normal share of the partnership's annual income, James and Stewart receive an annual guaranteed payment of $10,000 to compensate them for additional services they provide. Firewall's income statement for the current year reflects the following revenues and expenses: Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall...
Based only on the example provided, fil out the form below with
the ordinary income and the three items that must be reported
separately
[6] For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following: Long-term capital gain $7,000 Sec. 1231 loss (3.000) Dividends 200 Interest paid to partners for use of capital 12,000 The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must...
This year, FGH Partnership generated $690,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. B. Identify the taxpayers who must pay tax on the partnership income, and determine how...
This year, FGH Partnership generated $720,000 ordinary business
income. FGH has two equal partners: Triad LLC and Beta, an S
corporation. Triad LLC has three members: Mr. T, who owns a 40
percent interest; Mrs. U, who owns a 35 percent interest; and V
Inc., which owns a 25 percent interest. Beta has 100 shares of
outstanding stock, all of which are owned by Ms. B. Identify the
taxpayers who must pay tax on the partnership income, and determine
how...
This year, FGH Partnership generated $800,000 ordinary business income. FGH has two equal partners: Triad LLC and Beta, an S corporation. Triad LLC has three members: Mr. T, who owns a 40 percent interest; Mrs. U, who owns a 35 percent interest; and V Inc., which owns a 25 percent interest. Beta has 100 shares of outstanding stock, all of which are owned by Ms. B. Identify the taxpayers who must pay tax on the partnership income, and determine how...
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