25,000 8,000 6,000 54.000 Long-term capital gains Short-term capital losses Sec. 1231 gain Unrecaptured Sec. 1250 gain Depreciation: Rental real estate Machinery and equipment Interest expense related to: Mortgages on rental property Loans to acquire municipal bonds Guaranteed payments to Dale Low-income housing expenditures qualifying for credit 18,000 23,000 17,000 4,000 45,000 16,000 Dale, Rose, and Allen are equal partners in the DRA Partnership, which uses the accrual method of accounting. All three materially participate in the business. DRA reports financial accounting income of $156,000 for the current year. The partnership used the following information to determine financial accounting income. (Click the icon to view the information.) The following additional information is available about the current year's activities (Click the icon to view the additional information.) Read the requirements ..... Requirement a. What is DRA's financial accounting income? DRA's financial accounting income is Requirements b, c, and d. What is DRA's partnership taxable income? What is DRA's ordinary income (loss)? What are DRA's separately stated items? Begin by determining the partnership's taxable income, then ordinary income (loss), and finally separately stated items. (If a box is not used in the table leave the box empty; do not enter a zero. Use parentheses or a minus sign for loss and expense amounts.) Taxable Ordinary Separately Stated Items Income Income Income Operating profit Rental income Interest on municipal bonds Interest on corporate bonds Dividend income Gain on investment land Long-term capital gain Short-term capital loss Sec. 1231 gain Unrecaptured Sec. 1250 gain Expenses Depreciation Interest expense on mortgage Interest expense on municipal bond loan Guaranteed payment Low-income housing expenditures Total X Data table . $ 32,500 28,000 Operating profit (excluding the items listed below) Rental income Interest income: Municipal bonds (tax-exempt) Corporate bonds Dividend income (all from less-than-20%-owned domestic corporations) Gains and losses on property sales: Gain on sale of land held as an investment (contributed by Dale six years ago when its basis was $12,000 and its EMV was $17,000) Long-term capital gains Short-term capital losses 14,000 4,500 22,000 85,000 25,000 8,000 Soc 1221 anin 6. On Print Done More info The partnership received a $400 prepayment of rent for next year but has not recorded it as income for financial accounting purposes. The partnership recorded the land for financial accounting purposes at $17,000. MACRS depreciation on the rental real estate and machinery and equipment were $18,000 and $30,000, respectively, in the current year. MACRS depreciation for the rental real estate includes depreciation on the low-income housing expenditures. Print Done 25,000 8,000 6,000 54.000 Long-term capital gains Short-term capital losses Sec. 1231 gain Unrecaptured Sec. 1250 gain Depreciation: Rental real estate Machinery and equipment Interest expense related to: Mortgages on rental property Loans to acquire municipal bonds Guaranteed payments to Dale Low-income housing expenditures qualifying for credit 18,000 23,000 17,000 4,000 45,000 16,000 Dale, Rose, and Allen are equal partners in the DRA Partnership, which uses the accrual method of accounting. All three materially participate in the business. DRA reports financial accounting income of $156,000 for the current year. The partnership used the following information to determine financial accounting income. (Click the icon to view the information.) The following additional information is available about the current year's activities (Click the icon to view the additional information.) Read the requirements ..... Requirement a. What is DRA's financial accounting income? DRA's financial accounting income is Requirements b, c, and d. What is DRA's partnership taxable income? What is DRA's ordinary income (loss)? What are DRA's separately stated items? Begin by determining the partnership's taxable income, then ordinary income (loss), and finally separately stated items. (If a box is not used in the table leave the box empty; do not enter a zero. Use parentheses or a minus sign for loss and expense amounts.) Taxable Ordinary Separately Stated Items Income Income Income Operating profit Rental income Interest on municipal bonds Interest on corporate bonds Dividend income Gain on investment land Long-term capital gain Short-term capital loss Sec. 1231 gain Unrecaptured Sec. 1250 gain Expenses Depreciation Interest expense on mortgage Interest expense on municipal bond loan Guaranteed payment Low-income housing expenditures Total X Data table . $ 32,500 28,000 Operating profit (excluding the items listed below) Rental income Interest income: Municipal bonds (tax-exempt) Corporate bonds Dividend income (all from less-than-20%-owned domestic corporations) Gains and losses on property sales: Gain on sale of land held as an investment (contributed by Dale six years ago when its basis was $12,000 and its EMV was $17,000) Long-term capital gains Short-term capital losses 14,000 4,500 22,000 85,000 25,000 8,000 Soc 1221 anin 6. On Print Done More info The partnership received a $400 prepayment of rent for next year but has not recorded it as income for financial accounting purposes. The partnership recorded the land for financial accounting purposes at $17,000. MACRS depreciation on the rental real estate and machinery and equipment were $18,000 and $30,000, respectively, in the current year. MACRS depreciation for the rental real estate includes depreciation on the low-income housing expenditures. Print Done