Debbie and Betty operate the D & B partnership. Betty, a 50 percent partner, receives a guaranteed
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Question:
Debbie and Betty operate the D & B partnership. Betty, a 50 percent partner, receives a guaranteed payment of $10,000 for her services in operating the partnership. The partnership has income before the guaranteed payment of $5,000. What is the taxable income Debbie and Betty must each report from the partnership for the year?
Debbie should report income of $__________.
Betty should report income of $__________.
Net loss = income - guaranteed payment
= 5000- 10000
=-5000
Share of loss = 50%*-5000 = $2500
Debbie should report income of $
Since Debbi's guaranteed payment is more than the $25000 share of...
Related Book For
Business Law Principles and Practices
ISBN: 978-1133586562
9th edition
Authors: Arnold J. Goldman, William D. Sigismond
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