Code References: 702(a), 702(b), 703(a), 704(a) & 724.

The ABC partnership is composed of individual limited partners A and B and corporate general partner C. Each has a one-third interest in each item of income and deduction. A also operates a sole proprietorship. Determine each partner's distributive share of income and deductions, assuming the following receipts and expenditures:

a. $10,000 in long-term capital gain

b. $3,000 in dividends from a domestic corporation

c. $2,000 of a bad debt recovery.

d. $40,000 expenditure for property qualifying for 179.

e. $40,000 in depreciation expense, the first $10,000 of which is specially allocated to the limited partners by the partnership agreement.

f. $30,000 in investment interest expense.

g. $200,000 treasure trove (under Regulation 1.61-14).

h. $43, 000 of 162 expense.