Fasta Partnership, LP, a limited partnership, was formed on January 1, Year 2. Individuals Thomas Green...
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Fasta Partnership, LP, a limited partnership, was formed on January 1, Year 2. Individuals Thomas Green and Judith Smith each contributed cash for an interest in the partnership. Fasta operates a clothing manufacturing business and has a calendar year end. Green, the general partner, has a 60% ownership interest and actively participates in the management of the business on a daily basis. Green bears the economic risk of loss relating to all of Fasta's outstanding liabilities, except for Fasta's loan payable to Smith. Smith, the limited partner, has a 40% ownership interest and does not actively participate in the operations of the partnership. Smith is not obligated to restore any negative capital accounts upon liquidation of the partnership. A letter from Green and a copy of Fasta's adjusted tax trial balance for the year ended December 31, Year 3, can be found in the exhibits. For each item requested below, enter the applicable amount in the appropriate cell as a positive, whole value. If a response is zero, enter a zero (0). Item 1. Green's share of ordinary business income or loss for Year 3 2. Smith's share of net separately stated income or deduction items for Year 3 3. Green's share of bank debt at December 31, Year 3 4. Smith's share of bank debt at December 31, Year 3 5. Green's share of accounts payable at December 31, Year 3 6. Smith's share of accounts payable at December 31, Year 3 Amount 123 123 123 123 123 123 Fasta Partnership, LP, a limited partnership, was formed on January 1, Year 2. Individuals Thomas Green and Judith Smith each contributed cash for an interest in the partnership. Fasta operates a clothing manufacturing business and has a calendar year end. Green, the general partner, has a 60% ownership interest and actively participates in the management of the business on a daily basis. Green bears the economic risk of loss relating to all of Fasta's outstanding liabilities, except for Fasta's loan payable to Smith. Smith, the limited partner, has a 40% ownership interest and does not actively participate in the operations of the partnership. Smith is not obligated to restore any negative capital accounts upon liquidation of the partnership. A letter from Green and a copy of Fasta's adjusted tax trial balance for the year ended December 31, Year 3, can be found in the exhibits. For each item requested below, enter the applicable amount in the appropriate cell as a positive, whole value. If a response is zero, enter a zero (0). Item 1. Green's share of ordinary business income or loss for Year 3 2. Smith's share of net separately stated income or deduction items for Year 3 3. Green's share of bank debt at December 31, Year 3 4. Smith's share of bank debt at December 31, Year 3 5. Green's share of accounts payable at December 31, Year 3 6. Smith's share of accounts payable at December 31, Year 3 Amount 123 123 123 123 123 123
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Answer rating: 100% (QA)
1 9 000 2 0 3 15 000 4 10 000 5 10 000 6 6 000 See the calculations below foe each item 1 Green s sh... View the full answer
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1133587583
22nd edition
Authors: David P. Twomey, Marianne M. Jennings
Posted Date:
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