Jim and Jack are equal partners in J&J Interests, which has ordinary income for the year of $32,000 before guaranteed payments. Jim receives guaranteed payments of $36,000 during the year.

Calculate the total amount of income or loss from the partnership that should be reported by Jim and by Jack. Assume that each partner has a basis of $20,000 in the partnership. 

1. 3im should report total income of .................

2. Jack should report total loss X of..............

Answer rating: 100% (QA)

Required solution Jim Jack Total Ordinary Inocme for t... View the full answer