Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions: Sales revenue ..............................................................$40,000 Long-term capital

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Turtle Creek Partnership had the following revenues, expenses, gains, losses, and distributions:

Sales revenue ..............................................................$40,000

Long-term capital gains .................................................. $2,000

Cost of goods sold .................................................... ($13,000)

Depreciation - MACRS ................................................ ($3,000)

Amortization of organization costs ................................... ($1,000)

Guaranteed payments to partners for general management ...... ($10,000)

Cash distributions to partners...........................................($2,000)

Given these items, what is Turtle Creek's ordinary business income (loss) for the year?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For  answer-question

Taxation Of Individuals And Business Entities 2015

ISBN: 9780077862367

6th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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