Gabriel, an accountant, earns $360,000 from his practice. He also receives $9,100 in dividends and interest from various portfolio investments. During the year, he pays $85,000 to acquire a 15% interest in a partnership that produces a $120,000 loss. In addition, he has a $12,000 passive income from other sources. Compute Gabriel's AGI, assuming that: a.  He does not participate in the operations of the partnership. In this case, Gabriel's AGI is $. b.  He is a material participant in the operations of the partnership. In this case, Gabriel's AGI is $.

Question

Gabriel, an accountant, earns $360,000 from his practice. He also receives $9,100 in dividends and interest from various portfolio investments. During the year, he pays $85,000 to acquire a 15% interest in a partnership that produces a $120,000 loss. In addition, he has a $12,000 passive income from other sources. Compute Gabriel's AGI, assuming that:

a.  He does not participate in the operations of the partnership.

In this case, Gabriel's AGI is $.

b.  He is a material participant in the operations of the partnership.

In this case, Gabriel's AGI is $.

Expert Answer

Want to see the step-by-step answer?

See Answer

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Answer
*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.
Tagged in

Related Finance Q&A

Find answers to questions asked by student like you

Q: Susan Jones has a job as a pharmacist earning $45,000 per year, and she is deciding whether to take ...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: differecne between 401K and a 401B

A: At the outset, I want to state that there is no relevant comparison between 401(k) and 401(b). A rel...

Q: Final Assignment Ed Draycutt is the engineering manager of Airway Technologies, a firm that makes co...

A: Evaluation of Ed’s analysis:Net present value is the one of the best techniques of capital budget as...

Q: Bond value and time—Constant required returns   Pecos Manufacturing has just issued a 15​-year, 14​%...

A: a.Calculation of Value of Bond if the maturity period is 15 years, 12 years, 9 years, 6 years, 3 yea...

Q: WACC Estimation On January 1, the total market value of the Tysseland Company was $60 million. Durin...

A: 1It is given that,Equity is $30,000,000.Debt is $30,000,000.The amount of fund raised is $20,000,000...

Q: How do you calculate present value?

A: Present value:Present value (PV) refers to the current value of future money.

Q: Dudley Hill Golf Club's market-to-book ratio is currently 3.4 times and the PE ratio is 7.20 times. ...

A: Market to book value ratio = P / B = 3.4PE ratio = P/E = 7.20P = $ 33.60 per share

Q: Present value with A= 25,000, r=10% compounded quarterly, t=5 years

A: Plese see the formula on the white board. The symbols have the same meaning as in the question; addi...

Q: Could you please give me a brief overview of what "cash flow for ROR analysis" is? Thanks.

A: ROR analysis is a short form for Rate of Return Analysis.Under ROR analysis, we need to find that Ra...