Acey and Deucy formed the Acey Deucy Partnership on January 1, 2017, with cash investments of $120,000 and $80,000 for 60 percent and 40 percent respective interests in both the partnerships capital and income The partnership operates a retail sales business, reports on the calendar year and uses the accrual method From the data below, compute the partnerships 2021 ordinary business income and list the items which will be separately reportable by the partners on their individual returns All sales were made on account, $250,000 Sales of $4,800 were returned for allowances $235,000 was received as payments on account Inventory on January 1, 2021, was $64,500 purchases for 2021 were $82,500 ending inventory, $37,000 The partnership uses the specific write off method of accounting for bad debts $1,500 in uncollectible accounts was written off The depreciable assets held by the partnership were as follows Building cost $131,689 acquired in 2017 2021 cost recovery, $3,377 Machinery cost $20,000 seven year recovery property placed in service December 31, 2021 $20,000 immediately expensed under Code Sec 179 Dividends received $1,000 from Domestic Corp $750 from Foreign Corp on which 30 percent tax was withheld at source Sold on November 29, 2021, 600 shares Domestic Corp common stock for $8,500 1,000 shares were purchased on December 2, 2017, for $10,000 Sold on November 11, 2021, 300 shares Foreign Corp preferred stock for $2,200 800 shares were purchased on December 12, 2020, for $3,000 Sold on January 1, 2021, for $6,325, equipment which was purchased in 2017 for $3,200 on which cost recovery of $1,801 had been previously taken Organization costs of $3,000 are being amortized for financial purposes over a 10 year period Acey Deucy did not deduct any of these expenses, but amortized them over the shortest possible period for tax purposes $10,000 principal and $6,000 interest were paid on the partnerships mortgage A $400 cash contribution was made to the American Red Cross Salary expense for employees was $50,000 All $50,000 was W 2 wages Rent was $12,000 real estate taxes, $2,500 During 2021, Acey and Deucy made cash withdrawals of $50,000 and $25,000, respectively

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Acey and Deucy formed the Acey-Deucy Partnership on January 1, 2017, with cash investments of $120,000 and $80,000 for 60 percent and 40 percent respective

Acey and Deucy formed the Acey-Deucy Partnership on January 1, 2017, with cash investments of $120,000 and $80,000 for 60 percent and 40 percent respective interests in both the partnerships capital and income. The partnership operates a retail sales business, reports on the calendar year and uses the accrual method. From the data below, compute the partnerships 2021 ordinary business income and list the items which will be separately reportable by the partners on their individual returns

All sales were made on account, $250,000.
Sales of $4,800 were returned for allowances; $235,000 was received as payments on account.
Inventory on January 1, 2021, was $64,500; purchases for 2021 were $82,500; ending inventory, $37,000.
The partnership uses the specific write-off method of accounting for bad debts. $1,500 in uncollectible accounts was written off.
The depreciable assets held by the partnership were as follows:

Building---cost $131,689; acquired in 2017; 2021 cost recovery, $3,377.
Machinery---cost $20,000; seven-year recovery property; placed in service December 31, 2021; $20,000 immediately expensed under Code Sec. 179.

Dividends received: $1,000 from Domestic Corp.; $750 from Foreign Corp. on which 30 percent tax was withheld at source.
Sold on November 29, 2021, 600 shares Domestic Corp. common stock for $8,500; 1,000 shares were purchased on December 2, 2017, for $10,000.
Sold on November 11, 2021, 300 shares Foreign Corp. preferred stock for $2,200; 800 shares were purchased on December 12, 2020, for $3,000.
Sold on January 1, 2021, for $6,325, equipment which was purchased in 2017 for $3,200 on which cost recovery of $1,801 had been previously taken.
Organization costs of $3,000 are being amortized for financial purposes over a 10-year period. Acey-Deucy did not deduct any of these expenses, but amortized them over the shortest possible period for tax purposes.
$10,000 principal and $6,000 interest were paid on the partnerships mortgage.
A $400 cash contribution was made to the American Red Cross.
Salary expense for employees was $50,000. All $50,000 was W-2 wages.
Rent was $12,000; real estate taxes, $2,500.
During 2021, Acey and Deucy made cash withdrawals of $50,000 and $25,000, respectively.