3. PR.02-26 a. $ Alfredo owns a one-third interest in Bayou Partnership. During the current year, Bayou's taxable income is $45,000. 4. PR.02-28 $ 5. PR.02-33 Janet owns a pest-control service. She charges customers $50 per month for basic pest control. Alternatively, customers can pay a lump sum of $500 for one year of basic monthly pest control. During the current year, Janet receives $13,000 in monthly payments and $26,000 in 1-year prepayments. 6. PR.02-38 7. PR.02-40.ALGO $ Monte owns 1,000 shares of Ali, Inc., common stock. During the current year, Ali declares and distributes a 20% stock dividend. As a result, Monte receives an additional 200 shares of stock. 8. PR.02-41 9. PR.02-43 Rogers Trucking Company owes Big Truck Sales, Inc., $200,000 for the purchase of 3 trucks. Rogers is having a bad year and is unable to make full payment on the debt to Big Truck. Rather than foreclose on Rogers, Big Truck reduces the debt to $170,000 so that Rogers can stay in 10. PR.02-44 business