1.

2. Emanuel contributed $10,000 in exchange for a 40% profit (and loss) interest in EF Partnership. Fabio contributed land (FMV = $10,000; AB = $5,000) in exchange for a 60% profit (and loss) interest in EF Partnership. The partnership agreement specifies that the first $5,000 in profits (ever, not each year) will be allocated to Emanuel.

This year (first year of operation), EF Partnership generated income of $100,000 and deductions of $92,000 (net ord. business income or profit of $8,000). There were no separately stated items. $1,000 was distributed to Emanuel this year; no distribution was made to Fabio.

What amount of EF Partnerships net ordinary business income will be allocated to Emanuel this year (i.e. for tax purposes, what amount of EF Partnerships ordinary business income will Emanuel report on his individual tax return)?

Olga contributed $10,000 in exchange for a 50% capital interest in OP Partnership. Piotr also contributed $10,000 in exchange for a 50% capital interest in OP Partnership. The partnership agreement states that profits will be allocated 75% to Piotr and 25% to Olga and losses will be allocated 25% to Piotr and 75% to Olga. During the first year, OP Partnership had a loss of $15,000. If OP Partnership were to liquidate after the end of the first year when it has total assets of $5,000, which of the following is/are accurate? Select all that apply. The partnership would split any remaining assets equally among the two partners, with each partner receiving 50% of the assets ($2,500) Piotr would receive 75% of the remaining $5,000 ($3,750) Even though the partnership only has total assets of $5,000, Piotr would need to receive $6.250 upon liquidation of the partnership Olga would receive 25% of the remaining $5,000 ($1,250) Olga would need to contribute $1,250 to the partnership