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 receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) (20,000) (4,500) $ 97,000 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income (Leave no answer blank. Enter zero if applicable.) c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Jhumpa Stewart Kelly Self-employment tax
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 receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: $ 340,000 3,300 1,200 (120,000) (75,000) (28,000) (20,000) (4,500) $ 97,000 Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income (Leave no answer blank. Enter zero if applicable.) c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Jhumpa Stewart Kelly Self-employment tax
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text: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 receive an annual guaranteed
payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the
current year reflects the following revenues and expenses:
$ 340,000
3,300
1,200
(120,000)
( 75,000)
(28,000)
(20,000)
(4,500)
$ 97,000
Sales r evenue
Interest income
Long-term capital gains
Cost of goods sold
Employee wages
Depreciation expense
Guaranteed payments
Miscellaneous expenses
Overall net income
(Leave no answer blank. Enter zero if applicable.)
c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your
intermediate calculations and final answers to the nearest whole dollar amount.)
Jhumpa
Stewart
Kelly
Self-employment tax
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