Fill in blank: 1: does not fail/fails 2: will/will not 3:occurs/does not occur 4.:alters/does not occur 5:increase/reduces

PC:9-38 (similar to) Question Help Gary's only partner, Ann, agrees to divide the year's income as follows: (Click the icon to view the partners' share of income.) Gary sold securities for a $70,000 short-term capital loss during the current year, but he has no personal capital gains to recognize. The G&A General Partnership, in which Gary has a 50% capital, profits, and loss interest, reported a $82,000 short-term capital gain this year. In addition, the partnership earned $198,000 of ordinary income. Both partners and the partnership use a calendar year-end, and both partners have a 32% marginal tax rate. Read the requirements. Requirement a. Have the partners made a special allocation of income that has substantial economic effect? because the This special allocation special allocation the substantial economic effect test and be acceptable to the IRS. In particular, shifting the partners' capital accounts, and the special allocation the partners' total tax liability. PC:9-38 (similar to) Question Help Gary's only partner, Ann, agrees to divide the year's income as follows: (Click the icon to view the partners' share of income.) Gary sold securities for a $70,000 short-term capital loss during the current year, but he has no personal capital gains to recognize. The G&A General Partnership, in which Gary has a 50% capital, profits, and loss interest, reported a $82,000 short-term capital gain this year. In addition, the partnership earned $198,000 of ordinary income. Both partners and the partnership use a calendar year-end, and both partners have a 32% marginal tax rate. Read the requirements. Requirement a. Have the partners made a special allocation of income that has substantial economic effect? because the This special allocation special allocation the substantial economic effect test and be acceptable to the IRS. In particular, shifting the partners' capital accounts, and the special allocation the partners' total tax liability