Question: On January 2, 2010, Arch and Bean contribute cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio

On January 2, 2010, Arch and Bean contribute cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively.

For 2010, the partnership’s ordinary income was $40,000.

A distribution of $5,000 was made to Arch during 2010.

What amount of ordinary income should Arch report from the JK Partnership for 2010?

a. $ 5,000

b. $10,000

c. $20,000

d. $30,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Model Based Testing For Embedded Systems Questions!

Idexo Corporation is a privately held designer and manufacturer of licensed college apparel in Cincinnati, Ohio. In late 2019, after several years of lackluster performance, the firms owner and...

On January 2, 2010, Arch and Bean contribute cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For 2010, the partnerships...

18. On January 2, 2011, Arch and Bean contribute cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For 2011, the partnerships...

11. Bread Corporation is a C corporation with earnings of $150,000. It paid $60,000 of dividends to its sole shareholder, Gerald. Gerald also owns 100% of Butter, an S Corporation. Butter had net...

QUESTION 1 The accompanying 2-way cites show up in the unfamiliar trade market: Spot 2-months forward RS/US $ 56.0/'78.005 '89,.09/'47.50 Required: (i) How numerous US dollars should a firm offer to...

On January 2, Y1, Arch and Bean contribute $10,000 cash each to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 50% to 50%, respectively. For Y1, the partnership's...

In January, A and B contribute cash equally to form the YZ Partnership. A and B share profits and losses in a ratio of 75% to 25%, respectively. This year, the partnerships ordinary income was...

5. On January 1 of the current year, Bugsy and Siegel contribute cash equally to form the BS Partnership. Bugsy and Siegel share profits and losses in a ratio of 75% and 25%, respectively. The...

1.Fern received $10,000 in cash and a piece of land with an adjusted basis and market value of $20,000 in a liquidating distribution from the EF Partnership. Fern's basis in the partnership interest...

2 . Identify which of the following statements is true: If an S Corporation has no accumulated earnings and profits, the amount distributed to a shareholder will not increase the shareholder's basis...

1. Chapter 12Accounting for Partnerships and Limited Liability Companies Question MC #63 (Points: 1.75) Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of...

What would you consider your special qualifications to be? Why are you interested in pursuing the MBA degree? What do you propose to do with your advanced degree professionally?

An analyst predicts that the expected excess return on the market next year will be 4%. Assume that the betas estimated here using data from 2004-2006 are suitable as estimates of next year's betas....

Accumulated Other Comprehenslve income in the shareholders' equily section of the balance sheet retects changes in the fair vas which type of securties ? Multple Choice Comolldsted securities Held -...

What do you think is your strongest component of cultural intelligence? Your weakest? How would you go about shoring up your weaknesses?