Jayanthi and Krish each own a $50$ percent general partner interest in the JK Partnership. The following information is available regarding the partnership's $2023$ activities:

Sales revenue$ $865,000$Selling expenses$346,000$Depreciation expense$48,750$Long$-$term capital gain$17,600$Nondeductible expenses$3,800$Partnership debts, beginning of the year$105,000$Partnership debts, end of the year$129,200$Partnership distributions$$Jayanthi$52,500$Krish$52,500$

Required:

a$1.$ Calculate the partnership$$s ordinary $($nonseparately stated$)$ income.

a$2.$ Indicate which items must be separately stated by selecting "Yes" and which items must not be separately stated by selecting $"$No$".$

b$.$ Calculate Jayanthi$$s allocable share of partnership items.

c$.$ If Jayanthi has no other sources of taxable income, what is her total gross income for $2023?$

d$.$ At the beginning of the year, Jayanthi$$s adjusted tax basis in her partnership interest was $$45,750.$ Calculate her ending adjusted tax basis in her partnership interest.

Required:

Which of these income items are subject to self$-$employment tax?

Compute Wilma$$s $2022$ self$-$employment tax, assuming Wilma has no other earned income.

Compute Wilma's allowable QBI deduction, assuming $$43,000$ of W$-2$ wages and $$90,000$ unadjusted basis of tangible depreciable property. Further assume the overall taxable income limitation on QBI does not apply and Wilma$$s overall taxable income is sufficiently high that the W$-2$ wage limitation applies.

Compute the overall impact of the bookstore activity on Wilma$$s $2022$ taxable income.

Required:

Compute JC$$s after$-$tax income from their practice assuming their self$-$employment tax is $$3,744,$ and their marginal income tax rate is $22$ percent.

Rochelle is a limited partner in Megawatt Partnership. For $2024,$ her schedule K$-1$ from the partnership reported the following share of partnership items:

Ordinary income$ $37,600$Section $1231$ loss$(4,600)$Nondeductible expense$1,770$Cash distribution$5,550$

Required:

Calculate the net impact of the given items on Rochelle$$s $2024$ taxable income. Assume that Rochelle does not qualify for the QBI deduction.

Rochelle is a limited partner in Megawatt Partnership. For $2024,$ her schedule K$-1$ from the partnership reported the following share of partnership items:

Ordinary income$ $37,600$Section $1231$ loss$(4,600)$Nondeductible expense$1,770$Cash distribution$5,550$

Required:

Calculate the net impact of the given items on Rochelle$$s $2024$ taxable income. Assume that Rochelle does not qualify for the QBI deduction.

Assume that Rochelle$$s marginal tax rate is $35$ percent. Calculate her $2024$ after$-$tax cash flow as a result of her interest in Megawatt.