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Cody owns %10 interest in the X partnership. In the current year, X partnership has gross income from consulting services of $160,000 and the following
Cody owns %10 interest in the X partnership. In the current year, X partnership has gross income from consulting services of $160,000 and the following operating expenses: rent $20,000 , utilities $5,000 and wages of $10,000 . During the current year, the partnership sold a truck used in the trade or business for three years for $6000. The truck had an adjusted basis at the time of its sale of 1000 and 3000 of depreciation had previously been deducted by the partnership. The partnership also earned 3000 of tax exempt income and incurred 1000 of expenses related to the tax exempt income. On December 31 of the current year, the partnership made a distribution
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