HokiPoki, a cash-method general partnership, recorded the following items for its current tax year: Rental real estate

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HokiPoki, a cash-method general partnership, recorded the following items for its current tax year:

Rental real estate income ............................................ $2,000

Sales revenue ............................................................... $70,000

ยง1245 recapture income ............................................... $8,000

Interest income ............................................................. $2,000

Cost of goods sold...................................................... ($38,000)

Depreciation - MACRS.................................................. ($9,000)

Supplies expense ......................................................... ($1,000)

Employee wages ........................................................ ($14,000)

Investment interest expense ....................................... ($1,000)

Partner's medical insurance premiums paid by HokiPoki ......... ($3,000)

As part of preparing HokiPoki's current year return, identify the items that should be included in computing its ordinary business income (loss) and those that should be separately stated?

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Related Book For  book-img-for-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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