On January of the current year, Becky (20%), Chuck (30%), and Dawn (50%) are partners in the

Question:

On January of the current year, Becky (20%), Chuck (30%), and Dawn (50%) are partners in the BCD During the current year, BCD reports the following results. All items occur evenly throughout the year unless otherwise indicated. Assume the current year is not a leap year.
Ordinary income ……………………………………………….. $120,000
Long-term capital gain (recognized September 1) ……………..18,000
Short-term capital loss (recognized March 2)………………….. 6,000
Charitable contribution (made October 1) ……………………..20,000
a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year?
b. Assume that Becky purchases a 5% interest from Chuck on July 1 so that Becky and Chuck each own 25% from that date through the end of the year. What are Becky and Chuck’s distributive shares for the current year? Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...