In each of the following problems, discuss relevant tax codes. 2. A and B, both calendar year noncorporate taxpayers, are equal partners in the AB partnership, which had the following income and expenses during its taxable year that ended on July 31 of the current year: Gross receipts from inventory sales $100,000 Cost of goods sold 30,000 Salaries paid to nonpartners 10,000 Depreciation 12,000 Advertising expenses 8,000 Interest expense paid of a margin account maintained by AB 6,000 Gain from the sale of a machine Section 1245 gain 8,000 Section 1231 gain 2,000 Dividends 7,000 Charitable contributions 800 Tax-exempt Interest 500 STCG on sale of stock 6,000 LTCG on sale of stock 4,000 LTCL on sale of stock 2,000 Section 1231 gain on a casualty 1,000 Recovery of a property tax payment made two years ago 1,000 (a) How and when will AB, A, and B report the income and who will be liable for the taxes. In each of the following problems, discuss relevant tax codes. 2. A and B, both calendar year noncorporate taxpayers, are equal partners in the AB partnership, which had the following income and expenses during its taxable year that ended on July 31 of the current year: Gross receipts from inventory sales $100,000 Cost of goods sold 30,000 Salaries paid to nonpartners 10,000 Depreciation 12,000 Advertising expenses 8,000 Interest expense paid of a margin account maintained by AB 6,000 Gain from the sale of a machine Section 1245 gain 8,000 Section 1231 gain 2,000 Dividends 7,000 Charitable contributions 800 Tax-exempt Interest 500 STCG on sale of stock 6,000 LTCG on sale of stock 4,000 LTCL on sale of stock 2,000 Section 1231 gain on a casualty 1,000 Recovery of a property tax payment made two years ago 1,000 (a) How and when will AB, A, and B report the income and who will be liable for the taxes