On January of the current year, Manda (14 %). Daron (36%), and Diane (50%) are partners...
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On January of the current year, Manda (14 %). Daron (36%), and Diane (50%) are partners in the BGK Partnership. During the current year, BGK reports the following results. (Click the icon to view the results.) All items occur evenly throughout the year unless otherwise indicated. Assume the current year is not a leap year and that the partners agree to the proration method with a calendar day convention. Also assume the partnership incurred the capital gain and loss in the ordinary course of business, and thus they are not extraordinary items. Read the requirements. Requirement a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year? Manda Diane Ordinary income Long-term capital gain. Short-term capital loss Charitable contribution deduction S Ordinary income Long-term capital gain Short-term capital loss Charitable contribution 12,600 S 1,120 280 4,200 1/1 6/30 Daron 32,400 $ 2,880 720 10,800 Requirement b. Assume that Manda purchases a 11% partnership interest from Daron on June 30 so that Manda and Daron each own 25% from that date through the end of the year. What are Manda and Daron's distributive shares for the current year? (Use 365-day year for date ratios. Do not round date ratios or any interim calculations. Round your final answer to the nearest whole dollar.) First calculate the partnership's income split before and after the ownership changes. 7/1 - 12/31 45,000 4,000 1,000 15.000 d loss in t each pa 00 S ed ed od H Data table Ordinary income Long-term capital gain (recognized September 1) Short-term capital loss (recognized March 2) Charitable contribution (made October 1) Requirements $ 90.000 8,000 2,000 30,000 a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year? b. Assume that Manda purchases a 11% partnership interest from Daron on June 30 so that Manda and Daron each own 25% from that date through the end of the year. What are Manda and Daron's distributive shares for the current year? On January of the current year, Manda (14 %). Daron (36%), and Diane (50%) are partners in the BGK Partnership. During the current year, BGK reports the following results. (Click the icon to view the results.) All items occur evenly throughout the year unless otherwise indicated. Assume the current year is not a leap year and that the partners agree to the proration method with a calendar day convention. Also assume the partnership incurred the capital gain and loss in the ordinary course of business, and thus they are not extraordinary items. Read the requirements. Requirement a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year? Manda Diane Ordinary income Long-term capital gain. Short-term capital loss Charitable contribution deduction S Ordinary income Long-term capital gain Short-term capital loss Charitable contribution 12,600 S 1,120 280 4,200 1/1 6/30 Daron 32,400 $ 2,880 720 10,800 Requirement b. Assume that Manda purchases a 11% partnership interest from Daron on June 30 so that Manda and Daron each own 25% from that date through the end of the year. What are Manda and Daron's distributive shares for the current year? (Use 365-day year for date ratios. Do not round date ratios or any interim calculations. Round your final answer to the nearest whole dollar.) First calculate the partnership's income split before and after the ownership changes. 7/1 - 12/31 45,000 4,000 1,000 15.000 d loss in t each pa 00 S ed ed od H Data table Ordinary income Long-term capital gain (recognized September 1) Short-term capital loss (recognized March 2) Charitable contribution (made October 1) Requirements $ 90.000 8,000 2,000 30,000 a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year? b. Assume that Manda purchases a 11% partnership interest from Daron on June 30 so that Manda and Daron each own 25% from that date through the end of the year. What are Manda and Daron's distributive shares for the current year?
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Required no a Where distribution of profit made The share were 143650 or 71825 50 So share of ... View the full answer
Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Posted Date:
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