ZuoTi.Pro
Question

Wayne owns 60 percent and Larry owns 40 percent of the profits and losses of the...

Wayne owns 60 percent and Larry owns 40 percent of the profits and losses of the WL partnership. On January 1, 2018, the basis in their respective partnership interests is $60,000 and $10,000. During 2018, WL reports taxable ordinary income of $50,000 and has the following separately stated items: qualified dividend income of $1,000; taxable interest income of $2,600; charitable contributions of $3,000; and Sec. 179 expense of $20,000. During the year, partnership liabilities decreased by $25,000 and there were no distributions made to either partner. On December 31, 2018, what is the basis in each partner's interest in WL

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Wayne owns 60 percent and Larry owns 40 percent of the profits and losses of the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A partner owns a 50-percent interest in a partnership. For the partnership tax year ended December...

    A partner owns a 50-percent interest in a partnership. For the partnership tax year ended December 31, the partnership reports the following items of partnership income, gain, loss, deduction, and credit. Gross sales $400,000 Cost of goods sold 220,000 Wages 100,000 Net Section 1231 gain 50,000 Casualty loss 10,000 Interest 5,000 Depreciation 20,000 Business bad debt 5,000 Charitable contributions 5,000 Calculate the partner's distributive shares of (1) partnership ordinary income or loss and (2) separately stated items.

  • 1:1-45 Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During...

    1:1-45 Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During 2018, the partnership reported the total items below (100%) on its Form 1065: Ordinary income $180,000 Qualified dividends 10,000 Long-term capital loss (12,000) Long-term capital gain 28,000 Charitable contributions 4,000 Cash distributions to partners 150,000 Howard and his wife Dawn, who file a joint return, also had the following income and deductions from sources not connected with the partnership: Income Dawn's salary $40,000 Qualified...

  • Which is true? A) A cash distribution of an LLC’s income to its members is generally...

    Which is true? A) A cash distribution of an LLC’s income to its members is generally tax-free to them and to the LLC. B) Only cash distributions from a partnership are taxable to partners. C) Cash distributions exceeding a partner's basis in the partnership interest are taxable to the partner and to the partnership as ordinary income. D) All are true.

  • for the tax year, OPQ partnership reported $42000 net ordinary income, $5000 intert income, $600 charitable...

    for the tax year, OPQ partnership reported $42000 net ordinary income, $5000 intert income, $600 charitable contribution, and $18000 179 deduction. Pat is a general partner who owns a 20% interest in OPQ. In addition to her share of ordinary income, she received a $12000 guaranteed payment and had a $0 of distributions during the year. what is the amount of Play's self employment income from OPQ?

  • Help with this please. Partnership Income. Howard Gartman is a 40% partner in the Horton &...

    Help with this please. Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During 2019, the partnership reported the total items below (100%) on its Form 1065: 10,000 Ordinary income $180,000 Qualified dividends Long-term capital loss (12,000) Long-term capital gain 28,000 Charitable contributions 4,000 Cash distributions to partners 150,000 Howard and his wife Dawn, who file a joint return, also had the following income and deductions from sources not connected with the partnership: Income Dawn's...

  • for the tax year, OPQ Partnership reported $42000 net irdinry income, $5000 interst income, $600 charitable...

    for the tax year, OPQ Partnership reported $42000 net irdinry income, $5000 interst income, $600 charitable contributionand $18000 179 deduction. pat is a general partner who owns 20% interest in OPQ. in addition to her share of ordinary income, she receives $12000 guaranteed payment and had $0 distributions during the year. what is the amount of Pat’s self-employment income from OPQ?

  • Question 20 of 75. For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000...

    Question 20 of 75. For the tax year, OPQ Partnership reported $42,000 net ordinary income, $5,000 interest income, $600 charitable contribution, and $18,000 $179 deduction. Pat is a general partner who guaranteed payment and S0 distributions during the year. What is the amount of Pat's self-employment income from owns a 20% interest in OPQ. She received a $12,000 OPQ? $4,680 O $4,800 O $8,400 o $16,800

  • 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 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...

  • partnerships Question 18 of 75. Betty and Alan,each own 25% of partnership BAB. On October 15,...

    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...

  • During the current year, The Jupiter Company, which is an S corporation, had the following items...

    During the current year, The Jupiter Company, which is an S corporation, had the following items of income and expenses. Jupiter Corp. has two shareholders - Anton and Becky. Anton owns 40% of the company and Becky owns 60%. Label your answers a-g. Gross income from operations $137,000 Gain on sale of business assets 5,000 Qualified dividend income from investments 100 Salaries to employees 65,000 Payroll taxes 6,000 Rent 7,000 Depreciation 3,500 Contributions to United Way charity 2,000 Foreign tax...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT