Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows: Net income from operations (before guaranteed payment) $ 90,000 Guaranteed payment to Clover 30,000 What amount of income will each partner report on their personal return?
Hay, Straw and Clover formed the HSC Partnership, agreeing to share profits and losses equally. Clover will manage the business for which he will receive a guaranteed payment of $30,000 per year. Cash receipts and disbursements for the year were as follows: Net income from operations (before guaranteed payment) $ 90,000 Guaranteed payment to Clover 30,000 What amount of income will each partner report on their personal return?
Chapter21: Partnerships
Section: Chapter Questions
Problem 7BCRQ
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Question
Hay, Straw and Clover formed the HSC Partnership, agreeing to share
|
|
|
Net income from operations (before guaranteed payment) |
$ |
90,000 |
Guaranteed payment to Clover |
|
30,000 |
What amount of income will each partner report on their personal return?
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