Ashanti Partnership, a mining equipment business, states in its partnership agreement that Jonah and Tutu agree to split profits and losses according to a 40/60 ratio. Additionally, the partnership will provide Jonah with a $15,000 guaranteed payment for services he provides to the partnership. Ashanti Partnership reports the following revenues, expenses, gains, losses, and distributions for its current taxable year:

Gain on Sale of Land*	$ 4,000
MACRS Depreciation	$ 7,500
Charitable Contributions	$ 12,500
Sales	$ 40,000
Interest Income	$ 500
Cost of Goods Sold	$ 32,000
Section 179 Expense	$ 7,000
Tax-Exempt Income	$ 2,000
Other Income	$ 5,000

*The land is a Section 1231 asset.
Answer the following questions:
A. Compute Jonah's share of ordinary income (loss) and separately stated items. Include his self-employment income as a separately stated item.
B. Compute Jonah's self-employment income but assume Ashanti Partnership is a limited partnership and Jonah is a limited partner.
C. Compute Jonah's self-employment income but assume Ashanti Partnership is an LLC and Jonah is personally liable for half of the debt of the LLC.

Answer rating: 100% (QA)

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