The XYZ partnership provides that D will receive a guaranteed salary of $30,000 each year for her
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The XYZ partnership provides that D will receive a guaranteed salary of $30,000 each year for her services as an accountant. She will also receive one-third of the taxable income or loss. For the current year the partnership has ordinary income of $18,000 before the salary payment, a Section 1231 gain of $9,000, and short-term capital gain of $3,000. All taxpayers are cash method and have a calendar year end. The $30,000 salary is paid to D evenly throughout the year. What is XYZ's ordinary income or loss?
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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