Question
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 $105,000 at the beginning of the tax year. The partnership profits for the tax year were $1,679,100. Changes in their capital accounts during the tax year were as follows:
Faye Gary Heidi Total
Total Beginning balance $105,000 $105,000 $105,000 $315,000
Withdrawals (20,000) (35,000) (10,000) (65,000)
Additional contributions 0 0 5,000 5,000
Allocation of profits 559,700 559,700 559,700 1,679,100
Ending balance $644,700 $629,700 $659,700 $1,934,100
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 $ ......?????
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