Happy Times Film Distributions is an electing large partnership. During the current year, the partnership has the

Question:

Happy Times Film Distributions is an electing large During the current year, the has the following income, loss, and deduction items:
Ordinary income ………………………………………… $ 700,000
Passive income …………………………………………. 3,000,000
Sec. 1231 gains …………………………………………. 27,000
Sec. 1231 losses ………………………………………… (134,800)
Long-term capital gains from investments ……………… 437,600
General business tax credits …………………………….. 43,000
a. What ordinary income will Happy Times report?
b. What are the separately stated items reported by Happy Times?
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...