Scott and Dave each invested $100,000 cash when they formed the SD Partnership and became equal partners They agreed that the partnership would pay each partner a 5 guaranteed payment on his $100,000 capital account Before the two guaranteed payments, current year results were $23,000 of ordinary i...

SD Allocation to Partner Partnership Scott Dave Ordinary ...

Scott and Dave each invested $100,000 cash when they formed the SD Partnership and became equal partners.

Question:

Scott and Dave each invested $100,000 cash when they formed the SD and became equal partners. They agreed that the would pay each partner a 5% guaranteed payment on his $100,000 capital account. Before the two guaranteed payments, current year results were $23,000 of ordinary income and $14,000 of long-term capital gain. What amount and character of income will Scott and Dave report for the current year from their 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...