During 2016, the Tastee Partnership reported income before guaranteed payments of $259,500. Stella owns a 50% profits interest and works 1,710 hours per year in the business. Euclid owns a 50% profits interest and performs no services for the partnership during the year. For services performed in 2016, Stella receives a salary of $12,975 per month. Euclid withdrew $25,950 from the partnership during the year.

If required, round your answers to the nearest dollar.

a. What is the amount of guaranteed payments made by the partnership during 2016? $

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b. How much is the partnerships ordinary income after any deduction for guaranteed payments? $

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c. For 2016, how much income will Stella and Euclid report? Stella: $ Euclid: $

On June 1, 2015 Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership. Elisha contributes cash of $288,000. Ezra contributes building and land with an adjusted basis and fair market value of $480,000, subject to a liability of $192,000. The partnership borrows $30,000 to finance construction of a parking lot in front of the building. At the end of the first year (December 31), the accrual basis partnership owes $12,000 in trade accounts payable to various creditors. The partnership reported net income of $45,000 for the year which they share equally.

Assume that Elisha and Ezra share equally in partnership liabilities. How much is Elishas basis in the partnership interest on December 31? Ezras?

If required, round your answers to nearest dollar. Elisha's basis: $ Ezra's basis: $