Questions from Taxation

Q: Refer to the facts in the preceding problem. Mr. T

Refer to the facts in the preceding problem. Mr. T is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash distribution from KLMN. a. Compute Mr. T’s share of partnership o...

Q: Jayanthi and Krish each own a 50 percent general partner interest in

Jayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnership’s 2017 activities. Sales revenue ………………………………...

Q: Rhea is a self-employed professional singer. She resides in

Rhea is a self-employed professional singer. She resides in a rented apartment and uses one room exclusively as a business office. This room includes 225 of the 1,500 square feet of living space in th...

Q: Refer to the facts in the preceding problem. a.

Refer to the facts in the preceding problem. a. Complete Schedule K, Form 1065, for the partnership. b. Complete Schedule K-1, Form 1065, for Jayanthi. Data from Problem 19: Jayanthi and Krish each...

Q: This year, individual X and individual Y formed XY Partnership.

This year, individual X and individual Y formed XY Partnership. X contributed $50,000 cash, and Y contributed business assets with a $50,000 FMV. Y’s adjusted basis in these assets was only $10,000. T...

Q: AV Inc. is a member of an LLC. This year

AV Inc. is a member of an LLC. This year, AV received a Schedule K-1 reporting a $1,200 share of capital loss and a $4,000 share of Section 1231 gain. During the year, AV recognized a $5,000 capital l...

Q: Bonnie and George are equal general partners in BG Partnership. Bonnie

Bonnie and George are equal general partners in BG Partnership. Bonnie receives a $4,000 monthly guaranteed payment for services. This year, BG generated $95,000 profit (before consideration of Bonnie...

Q: Zelda owns a 60 percent general interest in YZ Partnership. At

Zelda owns a 60 percent general interest in YZ Partnership. At the beginning of 2016, the adjusted basis in her YZ interest was $95,000. For 2017, YZ generated a $210,000 business loss, earned $14,600...

Q: Refer to the facts in the preceding problem. In 2018,

Refer to the facts in the preceding problem. In 2018, YZ generated $7,000 ordinary business income and $18,000 dividend and interest income. The partnership made no distributions. At the end of the ye...

Q: At the beginning of 2018, Ms. P purchased a 20

At the beginning of 2018, Ms. P purchased a 20 percent interest in PPY Partnership for $20,000. Ms. P’s Schedule K-1 reported that her share of PPY’s debt at year-end was $12,000, and her share of ord...