Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the
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Question:
| Cost of Goods Sold | $ | 85,000 |
| Cash Distribution to Harry | $ | 15,000 |
| Municipal Bond Interest | $ | 1,500 |
| Short-Term Capital Gains | $ | 4,500 |
| Employee Wages | $ | 40,000 |
| Rent | $ | 10,000 |
| Charitable Contributions | $ | 25,000 |
| Sales | $ | 175,000 |
| Repairs and Maintenance | $ | 5,000 |
| Long-Term Capital Gains | $ | 12,000 |
| Fines and Penalties | $ | 5,000 |
| Guaranteed Payment to Lloyd | $ | 25,000 |
Given these items, what amount of ordinary business income (loss) and what separately-stated items should be allocated to each partner for the year? Enter negative numbers with a minus sign, for example -1000.
Ordinary business income (loss) allocated to Lloyd
Ordinary business income (loss) allocated to Harry
TOTAL separately stated items allocated to Lloyd
TOTAL separately stated items allocated to Harry
Expert Answer:
Particulars Amount 1 Sales 175000 2 Cost of Goods Sold 85000 3 Net Income from sale ... View the full answer
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