Check my work Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guarateed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: 3 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) (20,000) (4.500 $97,000 ces (Leave no answer blank. Enter zero if applicable.) b. How will it allocate these amounts to its partners? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Description Jhumpa Stewart Kelly 1,100 400 1,100 $ 1,100 $ Interest income Long-term capital gain Guaranteed payments Self-employment income 400 10,000 40,833 400 10,000 40,833 30,833
Check my work Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual guarateed payment of $10,000 to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: 3 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) (20,000) (4.500 $97,000 ces (Leave no answer blank. Enter zero if applicable.) b. How will it allocate these amounts to its partners? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Description Jhumpa Stewart Kelly 1,100 400 1,100 $ 1,100 $ Interest income Long-term capital gain Guaranteed payments Self-employment income 400 10,000 40,833 400 10,000 40,833 30,833
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Check my work
Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In
addition to their normal share of the partnership's annual income, Jhumpa and Stewart each receive an annual
guarateed payment of $10,000 to compensate them for additional services they provide. Firewalker's income
statement for the current year reflects the following revenues and expenses:
3
Sales revenue
Interest income
Long-term capital gains
Cost of goods sold
Employee wages
Depreciation expense
Guaranteed payments
Miscellaneous expenses
Overall net income
$ 340,000
3,300
1,200
(120,000)
(75,000)
(28,000)
(20,000)
(4.500
$97,000
ces
(Leave no answer blank. Enter zero if applicable.)
b. How will it allocate these amounts to its partners? (Round your intermediate calculations and final answers to the nearest whole
dollar amount.)
Description
Jhumpa
Stewart
Kelly
1,100
400
1,100 $
1,100 $
Interest income
Long-term capital gain
Guaranteed payments
Self-employment income
400
10,000
40,833
400
10,000
40,833
30,833
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