Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General Partnership. In addition to their normal share of the partnership's annual income, Oscar and Felix receive annual guaranteed payments of $7,000 to compensate them for additional services they provide. Eastside's income statement for the current year reflects the following revenues and expenses: $ 420,000 5,700 2,800 (210,000) (115,000) (28,000) (14,000) (9,500) Sales revenue Dividend income Short-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income $ 52,000 In addition, Eastside owed creditors $120,000 at the beginning of the year but managed to pay down its liabilities to $90,000 by the end of the year. All partnership liabilities are allocated equally among the partners. Finally, Oscar, Felix, and Marv had a tax basis of $80,000 in their interests at the beginning of the year. (Round your intermediate calculations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General Partnership. In addition to their normal share of the partnership's annual income, Oscar and Felix receive annual guaranteed payments of $7,000 to compensate them for additional services they provide. Eastside's income statement for the current year reflects the following revenues and expenses: $ 420,000 5,700 2,800 (210,000) (115,000) (28,000) (14,000) (9,500) Sales revenue Dividend income Short-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income $ 52,000 In addition, Eastside owed creditors $120,000 at the beginning of the year but managed to pay down its liabilities to $90,000 by the end of the year. All partnership liabilities are allocated equally among the partners. Finally, Oscar, Felix, and Marv had a tax basis of $80,000 in their interests at the beginning of the year. (Round your intermediate calculations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General Partnership. In addition to
their normal share of the partnership's annual income, Oscar and Felix receive annual guaranteed payments of $7,000 to
compensate them for additional services they provide. Eastside's income statement for the current year reflects the
following revenues and expenses:
$ 420,000
5,700
2,800
(210,000)
(115,000)
(28,000)
(14,000)
|(9,500)
$ 52,000
Sales revenue
Dividend income
Short-term capital gains
Cost of goods sold
Employee wages
Depreciation expense
Guaranteed payments
Miscellaneous expenses
Overall net income
In addition, Eastside owed creditors $120,000 at the beginning of the year but managed to pay down its liabilities to
$90,000 by the end of the year. All partnership liabilities are allocated equally among the partners. Finally, Oscar, Felix,
and Marv had a tax basis of $80,000 in their interests at the beginning of the year. (Round your intermediate calculations
and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
a. What tax basis do the partners have in their partnership interests at the end of the year?
Oscar
Felix
Marv
Tax basis
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ISBN:
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Author:
Hoffman
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