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?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 7BCRQ
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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?

 

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