GP Partnership, a calendar-year partnership, is owned by Grant Gilbert (70%) and Peter Paulson (30%). At...

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GP Partnership, a calendar-year partnership, is owned by Grant Gilbert (70%) and Peter Paulson (30%). At the beginning of 2022, Grant's basis in his GP Partnership interest was $400,000, and Peter's basis in his GP Partnership interest was $250,000. During 2022, GP Partnership had the following items of income and (expense): Gross receipts from sales Cost of goods sold Long-term capital gain Tax-Exempt Interest Advertising expenses MACRS Depreciation Charitable Contribution Qualified dividends income Rent expenses Salaries 2,600,000 (1,200,000) 45,000 10,000 (128,000) (428,000) (11,000) 30,000 (109,000) (286,000) In addition to the above items, GP Partnership's liabilities decreased by $60,000. Please show your work and explain your calculation for the following questions. a) (5 points) What is GP Partnership's 2022 ordinary business income or loss, and how much of the ordinary income or loss is allocated to Grant and Peter? b) (5 points) What income and expense items must GP Partnership separately state, and what is Grant and Peter's allocable share of the separately stated items? GP Partnership, a calendar-year partnership, is owned by Grant Gilbert (70%) and Peter Paulson (30%). At the beginning of 2022, Grant's basis in his GP Partnership interest was $400,000, and Peter's basis in his GP Partnership interest was $250,000. During 2022, GP Partnership had the following items of income and (expense): Gross receipts from sales Cost of goods sold Long-term capital gain Tax-Exempt Interest Advertising expenses MACRS Depreciation Charitable Contribution Qualified dividends income Rent expenses Salaries 2,600,000 (1,200,000) 45,000 10,000 (128,000) (428,000) (11,000) 30,000 (109,000) (286,000) In addition to the above items, GP Partnership's liabilities decreased by $60,000. Please show your work and explain your calculation for the following questions. a) (5 points) What is GP Partnership's 2022 ordinary business income or loss, and how much of the ordinary income or loss is allocated to Grant and Peter? b) (5 points) What income and expense items must GP Partnership separately state, and what is Grant and Peter's allocable share of the separately stated items?

Answer rating: 100% (QA)

a To calculate GP Partnerships 2022 ordinary business income or loss we need to sum up the income an... View the full answer