Question
Derohanian and Duan are equal partners in the DD Partnership. For the current year ended December 31, the partnership has taxable income of $75,000, which
Derohanian and Duan are equal partners in the DD Partnership. For the current year ended December 31, the partnership has taxable income of $75,000, which includes the following deductions: (1) guaranteed payments (salaries) to partners: Derohian, $35,000; and Duan, $25,000; and (2) charitable contributions, $6,000. What amount should be reported as OBI on the partnership return?
a.141,000
b.135,000
c. 81,000
d. 75,000During the year, Baral Corporation had the following transactions:
Net income per books (after tax) 50,000
Included in that amount were the following itemsFIT 7,000
Interest income from Federal treasury bonds 4,000
Interest expense paid on loan (proceeds were used to purchase treasury bonds) 3,500
Interest income from municipal bonds 2,000
Premiums paid on life ins policy where the employee is the beneficiary 8,000
Net capital gain (9,000 LTCG less 5,500 STCL) 3,500
Compute taxable income.
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