Arthur and Linda are equal partners in AL Partnership. The partnership, Arthur, and Linda are calendar year taxpayers. The partnership incurred the following items in the current year: (Click the icon to view the items.) Read the requirements. Requirements a and b. Compute the partnership's ordinary income and separately stated items. Show Arthur's and Linda's shares of the items in Part a. Which items would qualify as business income for the QBI deduction? Begin by computing the partnership's ordinary income. Partnership ordinary income items: Sales Minus: Cost of goods sold Gross profit Plus: Sec. 1245 gain Minus: Ordinary expenses 300000 180000 120000 38000 Depreciation -23000 Guaranteed payment -34000 Partnership ordinary income Show Arthur's and Linda's shares of the items in Part a. Arthur's share of the partnership ordinary income is Data table Sales Cost of goods sold $ 300,000 180,000 Dividends on corporate investments 12,000 Tax-exempt interest income 1,000 Section 1245 gain (recapture) on equipment sale 38,000 Section 1231 gain on equipment sale 26,000 Long-term capital gain on stock sale 13,000 Long-term capital loss on stock sale 9,000 Short-term capital loss on stock sale 7,000 Depreciation (no Sec. 179 or bonus depreciation components) 23,000 Guaranteed payment to Linda for services 34,000 Expense for business meals 2,800 and Linda's share of the partnership ordinary income is Interest expense on loans allocable to: Business debt 45,000 Stock investments Tax-exempt bonds 9,800 1,400 Principal payment on business loan 19,000 Charitable contributions 3,000 Distributions to partners ($15,000 each) 30,000 - X Arthur's share of the partnership ordinary income is and Linda's share of the partnership ordinary income is Data table Select the partnership's separately stated items. Enter the total amount for each item and show Arthur's and Linda's shares of the items. ( Separately stated items: Total Arthur Linda Sales Cost of goods sold 300,000 180,000 Dividends on corporate investments 12,000 Tax-exempt interest income 1,000 Section 1245 gain (recapture) on equipment sale 38,000 Section 1231 gain on equipment sale 26,000 Long-term capital gain on stock sale 13,000 Long-term capital loss on stock sale 9,000 Short-term capital loss on stock sale 7,000 Depreciation (no Sec. 179 or bonus depreciation components) 23,000 Guaranteed payment to Linda for services 34,000 Expense for business meals 2,800 In addition to the separately stated items in the preceding step, what other item must be reported by one or both partners? (Complete all a Arthur Linda Interest expense on loans allocable to: Business debt Stock investments Tax-exempt bonds 45,000 9,800 1,400 Principal payment on business loan 19,000 Charitable contributions 3,000 Distributions to partners ($15,000 each) 30,000 - X Requirement c. Compute Arthur's and Linda's ending basis in their partnership interests assuming their beginning balances are $160,000 each. Begin by entering the beginning basis for each partner. Determine the items and amounts which increase each partner's basis, then the items and amounts which decrease each partner's basis. Finally compute each partner's ending basis. Beginning basis in partnership interest Plus: Minus: Ending basis in partnership interest Arthur Linda