Question
Morgan is a 50% managing partner in the calendar year, cash basis MKK partnership. The partnership received the following for the year Service income $150,000
Morgan is a 50% managing partner in the calendar year, cash basis MKK partnership. The partnership received the following for the year
Service income $150,000
Rent expense 10,000
Salary expense to employees 40,000
Payment to Morgan for services, per the partnership agreement 40,000
Distributions to partners, Kristin and Katie 12,000 each
Payment to 30% cash basis partner Katie for tax & accounting work 10,000
a. How much will Morgans adjusted gross income increase as a result of the above items?
b. What amount will be included in Morgans self-employment tax calculation?
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Case Studies In Forensic Accounting And Fraud Auditing
Authors: Professor D. Larry Crumbley, Wilson LaGraize, Christopher E. Peters
2nd Edition
0808041932, 978-0808041931
