Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
Required information [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (§1231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 85,000 6,350 (33,500) (16,800) (12,100) (5,000) 5,000 (5,100) Note: Negative amounts should be indicated by a minus sign. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner. Self-employment income (loss)
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 20P
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Required information
[The following information applies to the questions displayed below.]
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
Employee wages
Cash charitable contributions
Municipal bond interest
Other expenses
$ 85,000
6,350
(33,500)
(16,800)
(12,100)
(5,000)
5,000
(5,100)
Note: Negative amounts should be indicated by a minus sign.
b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited
partnership and Gary is a limited partner.
Self-employment income (loss)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F674d01e8-8a2f-402b-9760-694d6097b7a5%2F52df1d4b-8f09-41f0-834a-1f139b659f12%2F1zuap6_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $18,700,
and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership
reports the following results:
Sales revenue
Gain on sale of land (§1231)
Cost of goods sold
Depreciation-MACRS
Employee wages
Cash charitable contributions
Municipal bond interest
Other expenses
$ 85,000
6,350
(33,500)
(16,800)
(12,100)
(5,000)
5,000
(5,100)
Note: Negative amounts should be indicated by a minus sign.
b. Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited
partnership and Gary is a limited partner.
Self-employment income (loss)
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