Schedules K and K-1 Reporting for Problem 13 (LO. 4, 5)

Amy and Mitchell are equal partners in the accrual basis AM Partnership. At the beginning of the current tax year, Amy's capital account has a balance of $300,000, and the partnership has recourse debts of $200,000 payable to unrelated parties. All partnership recourse debt is shared equally between the partners.

The following information about AM's operations for the current year is obtained from the partnership's records:

Ordinary income	$400,000
Interest income from P&G bond	4,000
Long-term capital loss	6,000
Short-term capital gain	12,000
Charitable contribution	4,000
Cash distribution to Amy	20,000

Note: Assume that year-end partnership debt payable to unrelated parties is $140,000.

If all transactions are reflected in her beginning capital and basis in the same manner, what is Amy report on her income tax return:

Share of ordinary income	$
Share of long-term capital loss	$
Share of short-term capital gain	$
Share of interest income	$
Share of charitable contribution deduction	$

Amy's distributive share of the partnership's: investment, income ordinary income or interest income is subject to self-employment tax.

The cash distribution Amy received: would be or would not better taxable and the decrease in Amy's share of partnership liabilities would be or would not be taxable.