KLMN Partnership's financial records show the following: $ 670,000 (460,000) (96,800) (6,240) (13,500) (1,500) (10,000) Gross...
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KLMN Partnership's financial records show the following: $ 670,000 (460,000) (96,800) (6,240) (13,500) (1,500) (10,000) Gross receipts from sales Cost of goods sold Operating expenses Business meals and entertainment Section 1231 loss on equipment sale Charitable contribution Distributions to partners 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 ordinary income and separately stated items. b. If Mr. T's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. c. How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year? KLMN Partnership's financial records show the following: $ 670,000 (460,000) (96,800) (6,240) (13,500) (1,500) (10,000) Gross receipts from sales Cost of goods sold Operating expenses Business meals and entertainment Section 1231 loss on equipment sale Charitable contribution Distributions to partners 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 ordinary income and separately stated items. b. If Mr. T's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. c. How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year?
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Related Book For
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach
Posted Date:
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