Question
A and B are equal partners in AB, Ltd. A and B have 704(b) book capital balances as shown below. The only activity in AB,
A and B are equal partners in AB, Ltd. A and B have 704(b) book capital balances as shown below. The only activity in AB, Ltd. is depreciation in the amount of $1,000 each year. AB, Ltd. specially allocates this depreciaton to A each year. AB, Ltd. has a qualified income offset provision to A in the amount of $1,500. Based on this information complete the table below for each of the years. Do not calculate years beyond the table.
| A | B | ||
| Beginning Capital | 1500 | 1500 | |
| Year 1 | |||
| CY Activity | |||
| Ending Capital | |||
| Year 2 | |||
| CY Activity | |||
| Ending Capital | |||
| Year 3 | |||
| CY Activity | |||
| Ending Capital | |||
| Year 4 | |||
| CY Activity | |||
| Ending Capital | |||
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
