John and Kate are partners in Reality Partnership, with John holding a 40% interest and Kate holding a 60% interest. The partnership agreement states that Kate will receive a salary of $75,000 and 8% interest on her average capital balance. At the end of the year, John's average capital balance is calculated as $90,000 and Kate's is $120,000. The partnership earns $80,000 in the current year before any payments to Kate. 

What amount of gain or loss is reported by John in the current year?  

Answer rating: 100% (QA)

The partnership earned 80000 before any payments to Kate Next well calculate Kates share of the part... View the full answer