Question
I understand the question and know how to answer most of it, however, I do have a small doubt and hopefully someone can help me
I understand the question and know how to answer most of it, however, I do have a small doubt and hopefully someone can help me clear it out
The question is
J is a one fourth partner in JKLM partnership. This partnership has gross sales of 880,000 Cost of sales of 540,000 and operating expenses of excluding payment to partners of 145,000 . Partner compensation of 90,000 (45,000) for J were paid and distributions of 120,000 (30,000) to J.
I have to determine the amount of income J must report from the partnership in the year.
I know 45,000 for compensation is included and also the distributions but on my notes I have
45,000+ 26,250= 71,250 where did this 26,250 come from ? wouldnt it be 30,000?
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