I keep getting the wrong answer. Please help me with understanding. Thank you. Jeremy and Juan are equal partners in the JJ Partnership. Jeremy receives a guaranteed payment of $120,000. In addition to theguaranteed payment, Jeremy withdraws $30,000 from the partnership. The partnership has $78,000 in ordinary income during theyear.a. How much income must Jeremy report from JJ partnership?b. What is the effect on Jeremy's partnership basis?

a. Jeremy must report $ 120,000 (Guaranteed Payment ) + $ 39,000 [($78,000 /2)Share of Income ] = $…

Jeremy and Juan are equal partners in the JJ Partnership. Jeremy receives a guaranteed payment of $120,000. In adul guaranteed payment, Jeremy withdraws $30,000 from the partnership. The partnership has $78,000 in ordinary income during the year. a. How much income must Jeremy report from JJ partnership? b. What is the effect on Jeremy's partnership basis?

Jeremy and Juan are equal partners in the JJ Partnership. Jeremy receives a guaranteed payment of $120,000. In adul guaranteed payment, Jeremy withdraws $30,000 from the partnership. The partnership has $78,000 in ordinary income during the year. a. How much income must Jeremy report from JJ partnership? b. What is the effect on Jeremy's partnership basis?

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 12DQ

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I keep getting the wrong answer. Please help me with understanding.

Thank you.

Jeremy and Juan are equal partners in the JJ Partnership. Jeremy receives a guaranteed payment of $120,000. In addition to the
guaranteed payment, Jeremy withdraws $30,000 from the partnership. The partnership has $78,000 in ordinary income during the
year.
a. How much income must Jeremy report from JJ partnership?
b. What is the effect on Jeremy's partnership basis?

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