The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, 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 (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Complete this question by entering your answers in the tabs below. Req A1 Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) 5,150 (3,600) Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). (Round your intermediate computations and final answers to the nearest whole dollar amount.) Description Separately Stated Items on Schedule K-1: $1231 gains Cash charitable contributions Guaranteed payment Municipal bond interest Self-employment income $ $ $ $ Total Amount Allocated to Gary 6,900 $ (4,600) $ 14,500 $ 5,150 $ 3,105 (2,070) 14,500 2,318
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500, 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 (Negative amounts should be indicated by a minus sign.) Problem 20-61 Part a (Algo) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). Complete this question by entering your answers in the tabs below. Req A1 Req A2 $ 80,700 6,900 (28,200) (18,100) (17,200) (4,600) 5,150 (3,600) Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss). (Round your intermediate computations and final answers to the nearest whole dollar amount.) Description Separately Stated Items on Schedule K-1: $1231 gains Cash charitable contributions Guaranteed payment Municipal bond interest Self-employment income $ $ $ $ Total Amount Allocated to Gary 6,900 $ (4,600) $ 14,500 $ 5,150 $ 3,105 (2,070) 14,500 2,318
Chapter21: Partnerships
Section: Chapter Questions
Problem 7BCRQ
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Question
Transcribed Image Text:The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,500,
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
(Negative amounts should be indicated by a minus sign.)
Problem 20-61 Part a (Algo)
a-1. How much ordinary income (loss) is allocated to Gary for the year?
a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment
income (loss).
Req A1
Complete this question by entering your answers in the tabs below.
Req A2
$ 80,700
6,900
(28,200)
(18,100)
(17,200)
(4,600)
Description
Separately Stated Items on Schedule K-1:
§1231 gains
Cash charitable contributions
Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment
income (loss). (Round your intermediate computations and final answers to the nearest whole dollar amount.)
Guaranteed payment
Municipal bond interest
Self-employment income
5,150
(3,600)
$
$
$
$
Total
Amount
Allocated
to Gary
6,900
$
(4,600) $
14,500 $
5,150 $
3,105
(2,070)
14,500
2,318
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