Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a

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Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV’s taxable income (after deducting the payment to Burgundy) is $80,000 for 2022 and $90,000 for 2023.

a. How much income from BV must Burgundy report for its tax year ending April 30, 2023? 

b. How much income from BV must Violet report for her tax year ending December 31, 2023?  

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South Western Federal Taxation 2023 Essentials Of Taxation Individuals And Business Entities

ISBN: 9780357720103

26th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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