On January of the current year,

Becky

(20%),

Chuck

(30%),

and

Dawn

(50%) are partners in the

BCD

Partnership. During the current year,

BCD

reports the following results.

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All items occur evenly throughout the year unless otherwise indicated. Assume the current year is not a leap year and that the partners agree to the proration method with a calendar day convention.

Read the requirements

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.

Requirement a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year?

	Becky	Chuck	Dawn
Ordinary income
Long-term capital gain
Short-term capital loss
Charitable contribution deduction

Requirement b. Assume that

Becky

purchases a

5%

partnership interest from

Chuck

on June 30 so that

Becky

and

Chuck

each own

25%

from that date through the end of the year. What are

Becky

and

Chuck's

distributive shares for the current year? (Use 365-day year for date ratios. Do not round date ratios or any interim calculations. Round your final answer to the nearest whole dollar.)

First calculate the partnership's income split before and after the ownership changes.

	1/1 - 6/30	7/1 - 12/31
Ordinary income
Long-term capital gain
Short-term capital loss
Charitable contribution

Now, calculate each partner's distributive share of the partnership results. First for the period January 1 through June 30, then for the period July 1 through December 31. (Round to the nearest whole dollar.)

	Becky	Chuck
1/1 through 6/30
Ordinary income
Long-term capital gain
Short-term capital loss
Charitable contribution

7/1 through 12/31
Ordinary income
Long-term capital gain
Short-term capital loss
Charitable contribution

Enter any number in the edit fields and then continue to the next question.

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Data Table

Ordinary income	$120,000
Long-term capital gain (recognized September 1)	18,000
Short-term capital loss (recognized March 2)	6,000
Charitable contribution (made October 1)	20,000