Description of this paper

The Dairy Partnership is owned equally to Dan & Ji...

Description

Solution


Question

The Dairy Partnership is owned equally to Dan & Jim. Jim?s basis is $ 14,000. at the beginning of the tax year. Dan?s basis is $ 9,000. at the beginning of the tax year. Dairy Partnership reported the following income and expenses for the current tax year: Sales revenue $ 90,000 Cost of sales 45,000 Guaranteed payment to Dan 24,000 Depreciation expense 12,500 Utilities 15,000 Rent expense 16,000 Interest income 3,000 Tax-exempt interest income 4,500 Payment to Massachusetts General Hospital for Jim?s medical expenses 10,000 Note: Jim?s basis of $ 14,000. includes his share of partnership liabilities. There was no increase, nor decrease in partnership liabilities for the year. a. Determine the ordinary partnership income (loss) and separately stated items for the partnership. b. Calculate Dan?s basis in his partnership interest at the end of the tax year. What items should Dan report on his Federal income tax return? c. Calculate Jim?s basis in his partnership interest at the end of the tax year. What items should Jim report on his Federal income tax return.,Hi, A couple of questions...why do you assume a tax rate of 30%? And what does to balance c/d mean? Thank you!

 

Paper#3310 | Written in 18-Jul-2015

Price : $25
SiteLock