B. Questions and Problems 1. During its first taxable year, the calendar year, Partnership ABCD has the follow- ing results Income Gross Receipts domestic inventory sales $750,000 $500,000 $1,250,000 $375,000 $250,000 Gross Receipts - foreign inventory sales Total Gross Receipts Cost of Goods Sold-domestic sales Cost of Goods Sold foreign sales Total Cost of Goods Sold Gross Profit from Operations Interest Income Municipal Bond Income (tax-exempt) Domestic Dividends Total Other Income Total Income $625,000 $625,000 $10,000 $2,000 $5,000 $17.000 $642,000 $250,000 $100,000 $150,000 Expenses Selling, General & Administrative Section 179 Expenditures Depreciation Organization Expenses Foreign Income Taxes Charitable Contributions Interest $11,000 $50,000 $5,000 $10,000 Total Expenses $576,000 $66.000 Net Income A, B, and C have 10% profit and loss sharing ratios and D has a 70% profit and loss sharing ratio. A is a nonresident alien and all of the other partners are U.S. citizens. a. How will Partnership ABCD report its operations to its partners? b. Does it matter that D personally has $450,000 of I.R.C. $179 expenditures? 200 000 and basis