Mark, a cash method taxpayer, is a partner in M&T Legal Services, a calendar year partnership. Under the partnership agreement, Mark is to receive 20% of the partnership's profits or losses. Each partner is allowed to withdraw $10,000 each month for his or her living expenses. Mike withdrew $120,000 during the year as his monthly draw in 2015. In March 2015, Mike received $50,000 as his share of distributed 2014 profits. The partnership earnings before partners' withdr Mark's gross income from the partnership for 2015 3. awals for 2015 totaled $1 million. Compute Ted and Alice were in the process of negotiating a divorce agreement. They own bonds with a basis of $3,000,000 and a fair market value of $1,800,000. They also own common stock with a basis of $1,100,000 and a fair market value of $1,800,000. Alice is trying to decide whether to receive the bonds or the stock. She has no plans for selling the bonds or stock, whichever she receives. Ted will sell the asset he receives immediately and he also has significant capital gains that year, from other transactions. 4. Are the assets of equal value, given the relative plans of her vs. him, and the fact that he has "significant capital gains" already?? a. b. Which would you advise Ted to receive-the bonds or the stock? c. What would you advise Alice to do? On January 1 Patti made a $90,000 interest-free loan to her son, Alex, who used the money to pay off the $40,000 mortgage on his personal residence and also to buy a S50,000 certificate of deposit. Alex's only income for the year is his salary of $45,000 and $2,000 interest income on the certificate of deposit. The relevant Federal interest rate is 3% compounded semiannually. The loan is outstanding for the entire year. 5. Based on the above information, what is the effect of this loan on Patti's gross income for the year? a