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Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the
Jhumpa, Stewart, and Kelly are all one-third partners in the capital and profits of Firewalker General Partnership. In addition to their normal share of the partnership's annual income, Jhumpa and Stewart receive an annual guaranteed payment of $10,000 each to compensate them for additional services they provide. Firewalker's income statement for the current year reflects the following revenues and expenses: (Leave no answer blank. Enter zero if applicable.) a-1. How much ordinary business income floss) would Firewalker report for the currentyear? a-2. What separately stated items will it report on its return for the year? How much ordinary business income (loss) would Firewalker report for the current year? Sales revenue Interest income Long-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Self-employment income b. How will Firewalker allocate ordinary business income and separately stated items to its partners? (Round your intermediate calculations and final answers to the nearest whole dollar amount.) c. How much self-employment tax will each partner pay assuming none has any other source of income or loss? (Round your intermediate calculations and finol answers to the nearest whole dollar amount.)
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