Question
ayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnerships 2016 activities:
ayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnerships 2016 activities: Sales revenue $ 580,000 Selling expenses 232,000 Depreciation expense 41,750 Long-term capital gain 9,800 Nondeductible expenses 2,550 Partnership debts, beginning of the year 114,000 Partnership debts, end of the year 135,300 Partnership distributions Jayanthi 57,000 Krish 57,000 a-1. Calculate the partnerships ordinary (nonseparately stated) income. a-2. Indicate which items must be separately stated by selecting "Yes" and which items must not be separately stated by selecting "No". b. Calculate Jayanthis allocable share of partnership items. c. If Jayanthi has no other sources of taxable income, what is her total gross income for 2016? d. At the beginning of the year, Jayanthis adjusted tax basis in her partnership interest was $35,250. Calculate her ending adjusted tax basis in her partnership interest.
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