Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 494,000 422,800 82,800 2,640 900 300 300 3,000
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership records disclosed the following information: Sales revenue Cost of goods sold Operating expenses Long-term capital gains §1231 gains Charitable contributions Municipal bond interest Salary paid as a guaranteed payment to Deanne (not included in expenses) $ 494,000 422,800 82,800 2,640 900 300 300 3,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 38P
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Hh.105.
![Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
§1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
$ 494,000
422,800
82,800
2,640
900
300
300
3,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2faa5584-2ed5-4be3-88de-d1521b4a2160%2F0bd5efc3-c34a-4bd2-a6fb-a739cec8206e%2Ft4lmtx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and
Deanne each contributed $126,000, and Keon transferred an acre of undeveloped land to the partnership. The land had a
tax basis of $72,400 and was appraised at $196,000. The land was also encumbered with a $72,400 nonrecourse
mortgage for which no one was personally liable. All three partners agreed to split profits and losses equally. At the end of
the first year, Blue Bell made a $8,600 principal payment on the mortgage. For the first year of operations, the partnership
records disclosed the following information:
Sales revenue
Cost of goods sold
Operating expenses
Long-term capital gains
§1231 gains
Charitable contributions
Municipal bond interest
Salary paid as a guaranteed payment to Deanne (not
included in expenses)
$ 494,000
422,800
82,800
2,640
900
300
300
3,000
Transcribed Image Text:List the separate items of partnership income, gains, losses, and deductions that the partners must show on their individual income
tax returns that include the results of the partnership's first year of operations.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Negative amounts should
be entered with a minus sign. Leave no answers blank. Enter zero if applicable.
Description
Ordinary business income (loss)
Separately stated items on Schedule K-1:
< Required A
Total
Keon
Required D >
Aaron
Deanne
Show less A
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