Question

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 much income must be reported by each. Mr. T Mrs. U V Inc. Ms. B Triad LLC Beta

Answer 1

ANSWER:

As per the given Question

Since Triad LLC and Beta are two equal partners So $ 690,000 will be divided among two equally i.e $345,000 each

Now Triad LLC has three members so Triad share of profit i.e $345,000 will be divided among its member in their percent of interest

Mr. T   345000*40%=138,000

Mrs. U 345000*35%=120,750

V Inc.    345000*25%= 86,250

Beta has one member i.e. Ms. B who hold 100% shares So

Ms.B     345000*100%=345,000

Traid LLC & Beta will show its income as Nil as it has been reported by its members

Following Income reported by each

Mr. T	138,000
Mrs. U	120,750
V Inc.	86,250
Ms. B	345,000
Triad LLC	NIL
Beta	NIL

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