Maria and Javier are the equal partners in MarJa, a partnership that is a qualifying trade or business. In the current year, MarJa had $350,000 of ordinary income after reporting $500,000 in guaranteed payments to Maria and Javier for their services to MarJa ($250,000 each). a. What is Maria's and Javier's qualified business income? b- What's Maria's and Javier's qualified business income if Marja had $550,000 of ordinary income after reporting $300,000 in guaranteed payments to Maria and Javier ($150,000 each)?

Question

Maria and Javier are the equal partners in MarJa, a partnership that is a qualifying trade or business. In the current year, MarJa had $350,000 of ordinary income after reporting $500,000 in guaranteed payments to Maria and Javier for their services to MarJa ($250,000 each).

a. What is Maria's and Javier's qualified business income?

b- What's Maria's and Javier's qualified business income if Marja had $550,000 of ordinary income after reporting $300,000 in guaranteed payments to Maria and Javier ($150,000 each)?

Expert Answer

Want to see the step-by-step 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!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

US Taxation

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Define cash and cash equivalents and explain how to report them.

A: Cash and cash equivalents are the current assets of a company which are available as cash or readily...

Q: Manning Imports is contemplating an agreement to lease equipment to a customer for four years. Manni...

A: A lease payment is a payment which is as per lease agreement which is agreed between the owner of an...

Q: with the help of the statement of income  attached please answer the below: 1: What was the trend in...

A: Capital Expenditure: These are the funds used by company to acquire, maintain and upgrade the  physi...

Q: Is the not-for-profit form of business organization appropriate for the Green Bay Packers? Why or wh...

A: G B P are the only communal owned, non-profit football team in the NFL. They have allotted over 5 mi...

Q: The following pre-closing accounts and balances were drawn from the records of Carolina Company on D...

A: Definition: Balance sheet: To know financial position of the business on particular date balance she...

Q: A critical assumption of the exploratory factor analysis (EFA) is that it is only appropriate for se...

A: Definition: Exploratory Factor Analysis (EFA): It is a statistical approach to determine the correla...

Q: Please prepare Journal Entries & T Accts for: 2019                           December   Adj...

A: Journal entries for the above transactions are as follows:  

Q: The following information relates to Eva Co's sales tax for the month of March 20X3:$Sales (includin...

A: We have the following information: Sales (including sales tax): $109,250 Purchases (net of sales ta...

Q: Describe the advantages and disdvantages of the payroll tax deferral. Explain what is positive or ne...

A: Payroll taxes are shared by the employer and employee, each paying 6.2% of wages along with a 1.45% ...

Q: Arthur Ltd. has the following statement of financial position Statement of financial position before...

A: Debt to Asset Ratio = Debt/Total Assets * 100 Debt to asset ratio measures how much assets of a firm...

Q: The stockholders’ equity section of O’Vear Corporation consists of Common stock ($10 par) $2,000,00...

A: The dividend is the amount of income earned by the stockholders in return for their investment. It i...

Q: From the following Company R adjusted trial balance, prepare the following:Income StatementRetained ...

A: Financial Statement: Financial statements are written records that convey the business activities an...

Q: On January 1, 2010, Deweese Corporation had $1,000,000 of common stock outstanding that was issued a...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: The Partnership agreement of Jones, King and Lane provides for the annual allocation of the business...

A:   Partnership:   Partnership is agreement between two or more persons coming together for business a...

Q: St teresa's medical center offers number of specialized medical services, including neuroscience, ca...

A: Cost:   Cost can be defined as the cash and cash equivalent which is incurred against the products o...

Q: What is the cash and cash equivalents' answer? Thanks

A: Cash and Cash equivalent:   The liquid current assets under balance sheet assets side are cash and c...

Q: Use the following Adjusted Trial Balance to prepare a classified Balance Sheet: Adjusted Trial Balan...

A: Classified Balance-Sheet: A classified balance sheet is a financial statement with classifications l...

Q: Davis acquires 100% of Ramos on January 1, 2009, Ramos will be operated as a separate subsidiary. Da...

A: We will answer only first three parts of the question as it is not specified which question to be an...

Q: Identify which of the following transactions andevents are product costs and which are period costs:...

A: Click to see the answer

Q: On May 1, the bank said it may lend money to Nim Com Soup, Inc. The amount will depend on Nim Com So...

A: Net Income: Net income is the revenues recognized in a reporting period, less the expenses recognize...

Q: Tammy Potter, a new partner with the regional CPA firm of Tower & Tower, was recently appointed ...

A: Non-acceptance of audit client:   When the investigation process for the engagement offered turns o...

Q: Joseph Ray just received an inheritance of $35,775 from his great aunt. He plans to invest the funds...

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest ti...

Q: Why do investors find both income statement and statement of cash flows useful? critically examine t...

A: carried out in a business i.e. operating activities, investing activities and financing activities. ...

Q: Federal Income Tax Withholding Bob Avery's weekly gross earnings for the present week were $2,880. A...

A: Note: As the question does not specify any year or rates that are to be used for solving this, thus,...

Q: Opticom, Inc. a manufacturer of fiber optic communications equipment, use a job-order costing system...

A: Click to see the answer

Q: the uses of cost information in decision making to managers

A: Cost: It is a value related to the product that determines its purchasing value. A cost, in general,...

Q: The December 31, 2020 (pre-closing) adjusted trial balance for Ybor Enterprises was as follows:   ...

A: The income statement is used for reporting the financial performance of the company over a specific ...

Q: The December 31, 2020 (pre-closing) adjusted trial balance for Ybor Enterprises was as follows:   ...

A: The income statement is used for reporting the financial performance of the company over a specific ...

Q: Activity based costing in China:a case study of Xu Ji Electric Co. Ltd Based on your chosen cost...

A: Activity Based Costing (ABC) refers to the that method of costing in which overhead costs and indire...

Q: Glen Pool Club, Inc., has a $300,000 mortgage liability. The mortgage is payable in monthly installm...

A: Amortization schedule: It can be defined as a comprehensive table that shows the complete details of...

Q: Working on some payroll questions.  Please see attachment.

A: Payroll taxes are the taxes paid on the wages and salaries of employees. It is the taxes withheld by...

Q: Chopin (Pty) Ltd ordinarily pays their employees a bonus in the form of a thirteenth chequetogether ...

A: Bonus is paid in extra to the salary of the employee. To make the employees motivated and dedicated ...

Q: In 56 years,Kevin will be 9 times as old as he is right now How old is he right now?

A: Let Kevin is x years old right now  After 56 years : x + 56 = 9x ( given, In 56 years,Kevin will be ...

Q: For each of the following information pertaining to Von Company, a fiscal-year company, prepare the ...

A: Adjusting Entries: These are the accounting entries that are to be made at the year-end in the journ...

Q: Recording Revenue Under a Contract Modification Traders Inc. enters into a three-year office mainte...

A: The contract modification is the alteration in price or scope of the prevailing contract, which is a...

Q: 3.1 Pocket Projects Ltd is a company specialising in the construction of schools for the Eastern Cap...

A: For Contract Revenue recognition accounting standards suggest two methods Percentage of completion ...

Q: Hi! I also need an answer for all the journal entries required in this problem. Thank you so much!

A: A product costing system under which the cost related to the production of goods or services only af...

Q: A bookstore offers you the following deal: you pay $32 today (in January) and you get 9% off the pri...

A: Break Even is Point where Payout/Payin in both the option is Indifferent. so at Break Even point Amo...

Q: On November 1, Cooper Equipment had a beginning balance in the Office Supplies account of 5600.. Dur...

A: Journal: Recording of a business transactions in a chronological order.

Q: The following estimates have been prepared for a project: Fixed costs: $5,400 Depreciation: $3,600 S...

A: Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varyi...

Q: Define direct costs and indirect costs and prepare a list of three direct and three indirect costs f...

A: Direct costs are the expenses which connect to cost object. These costs include raw materials, labor...

Q: Chapter 12 - Problem 1 Periodic interest rates:

A: Periodic rate is the rate of interest expressed over the shorter period which can be calculated by d...

Q: Inferring Costing Method; Unit Product Cost [LO6–1] Sierra Company incurs the following costs to pro...

A: Absorption costing: Absorption costing method includes, all the product costs required for producing...