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Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of
Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $85,000 at the beginning of the tax year. The partnership profits for the tax year were $1,782,000. Changes in their capital accounts during the tax year were as follows: Faye Gary Heidi Total Beginning balance $85,000 $85,000 $85,000 $255,000 Withdrawals (20,000) (35,000) (10,000) (65,000) Additional contributions 0 0 5,000 5,000 Allocation of profits 594,000 594,000 594,000 1,782,000 Ending balance $659,000 $644,000 $674,000 $1,977,000 Compute each partner's gross income from the partnership for the tax year. Each partner's gross income from the partnership for the tax year is $ 90,800 X
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