20.

Comprehensive Problem. Barbara Thompson and Colleen Tiller are equal partners in the Boteq partnership. Barbara is age 72 and Colleen age 58.Both are unmarried and the partnership is their sole source of income.During the current year, Boteq's records show the following items of income and expense.In a columnar form, list those items which must be reported as partnership ordinary income and those which must be reported separately by the partnership. -

1. Cross profit on sale of goods $40,000
2. Selling and administrative expenses 30,000

Other Items not included in above:

1. Dividends from domestic 1,000

corporations

2. Charitable contributions to church 500
3. Long-term capital gains 2,000
4. Short-term capital losses 500
5. Section 1245 gain on office 800

equipment which had an

adjusted basis at sale of $400

6. Theft of days receipts 1,200
7. Theft of Barbara's fur coat in 1,000

the pocket of which were the

receipts. Original cost $2,500,

FMV at date of theft

8. Royalty check for Boteq's 400

$10,000 investment this year in

a widget mining venture

9. Notice of Boteq's coal

percentage depletion allowance

of $1,000(the property has

been fully depleted for several

years)

10. Enpensing of seven-year 2,000

Property under Code Sec. 179,

Purchased during the year

11. Social Security benefit checks 4,500

payable to barbara which were

regularly deposited to Boteqs account