Please refer to the multiple-choice solution below. Choose one of the partners (Murray or Parker) and prepare a Schedule K-1 based on the information provided (please find it on Google on your own). You must include the name of the partnership, the name of the partner, the three items that must be reported separately, and the ordinary income. If you are wondering, Section 1231 loss is similar to capital loss but has its own line.

For the current year, the Murray and Parker Partnership had book income of $100,000, which included the following:

Long-term capital gain ............................................... $ 7,000 

Sec. 1231 loss ................................................................ (3,000)

Dividends ........................................................................... 200

Interest paid to partners for use of capital .............. 12,000 

The partners share profits and losses equally. What amount of partnership income (excluding all partnership items which must be reported separately) should each partner report in his or her individual income tax return for the current year?

A. $47,900 

B. $48,000 

C. $50,000 

D. $53,900

Answer rating: 100% (QA)

Pago No Date Sol Total Book income 100000 Add Losses us1231 to... View the full answer