A has one-fourth and B has three-fourths interest in a partnership that operates a toy manufacturing company.
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Question:
A has one-fourth and B has three-fourths interest in a partnership that operates a toy manufacturing company. The partnership files its partnership return on the calendar-year basis. The partnership books disclose the following information for the current calendar year:
Sales | $235,000.00 |
Returns and allowances | $10,000.00 |
Opening inventory | $50,000.00 |
Purchases | $50,000.00 |
Cost of labor and supplies | $105,000.00 |
Closing inventory | $61,000.00 |
Royalties received for use of a patent | $1,100.00 |
Salaries | $26,000.00 |
Guaranteed payments to partners ($8,400 each) | $16,800.00 |
Rent paid | $17,000.00 |
Interest expense on business debt (other than payments to the patents) | $550.00 |
Taxes | $8,500.00 |
Bad debt written off | $1,000.00 |
Repairs | $3,000.00 |
Depreciation | $2,470.00 |
Light, postage, stationery, etc | $1,680.00 |
Net long-term capital gain | $600.00 |
Dividends | $200.00 |
Compute the partnership income and partner's distributive shares of items that are required to be separately stated.
Related Book For
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
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