Question: Problem: Module 7 Textbook Problem 2 Learning Objective: 7-4 Explain the flow-through of partnershlp items to the partners This year, Herb Partnership generated $710,000 ordinary
Problem: Module 7 Textbook Problem 2 Learning Objective: 7-4 Explain the flow-through of partnershlp items to the partners This year, Herb Partnership generated $710,000 ordinary business income. Herb has two equal partners; Savory LLC and Sweet Corp. an S corporation. Sevory LLC has three mernbers: Mr. Parsley, an individual who owns a 40 percent interest, Mrs. Rosemary, an Individual who owns a 35 percent interest, and Sage inc, a C Corporation which owns a 25 percent interest. Sweet Corp. has 100 shares of outstanding stock, all of which are owned by Ms. Mint, an individual. Required: Identify the taxpayers who must pay tax on the portnership income, and determine how much income must be reported by each. if a toxpsyer does not have to pay tax due to Herb Partnership's allocated income, put " 0 " for the
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