Problem 10-20 (Static) [LO 10-4, 10-6] 2 KLMN Partnership's financial records show the following: 516/6 points awarded Scored Gross receipts from sales Cost of goods sold Operating expenses Business meals Section 1231 loss on equipment sale Charitable contribution Distributions to partners $ 670,000 (460,000) (96,800) (6,240) (13,500) (1,500) (10,000) eBook References Mr. Ty is a 10 percent general partner in KLMN. During the year, he received a $1.000 cash distribution from KLMN Required: a. Compute Mr. Ty's share of partnership ordinary income and separately stated items. b. If Mr. Ty's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. c. How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year? Complete this question by entering your answers in the tabs below. Required A Required B Required Compute Mr. Ty's share of partnership ordinary income and separately stated items. (Negative amounts should be indicated by a minus sign.) Amount 11,008 Ordinary business income Separately stated items: Section 1231 loss equipment sale Charitable contribution Nondeductible expense (1.350) (150) (312) X % Problem 10-20 (Static) [LO 10-4, 10-6] 2 KLMN Partnership's financial records show the following: 5.16/6 points awarded Scored Gross receipts from sales Cost of goods sold Operating expenses Business meals Section 1231 loss on equipment sale Charitable contribution Distributions to partners $ 670,000 (460,000) (96,800 (6,240) (13,500) (1,500) (10,000) ebook G References Mr. Ty is a 10 percent general partner in KLMN. During the year, he received a $1.000 cash distribution from KLMN Required: a. Compute Mr. Ty's share of partnership ordinary income and separately stated items. b. If Mr. Ty's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. c. How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year? Complete this question by entering your answers in the tabs below. Required A Required B B Required IF Mr. Ty's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. (Negative amounts should be indicated by a minus sign.) Amount $ 45,000 11,008 Mr. Ty's adjusted basis at beginning of year Ordinary business income Adjustments: Cash distribution Section 1231 loss Charitable contribution Nondeductible expense (1.000) (1,350) (150) ( (312) Mr Ty's adjusted basis at end of year S 53, 196 Problem 10-20 (Static) [LO 10-4, 10-6] 2 KLMN Partnerships financial records show the following: 5.16/6 points awarded Scored Gross receipts from sales Cost of goods sold Operating expenses Business meals Section 1231 loss on equipment sale Charitable contribution Distributions to partners $ 670,000 (460,000) (96, 800) (6,240) (13,500) (1,500) (10,000) eBook References Mr. Ty is a 10 percent general partner in KLMN. During the year, he received a $1,000 cash distribution from KLMN. W Required: a. Compute Mr. Ty's share of partnership ordinary income and separately stated items. b. If Mr. Ty's adjusted basis in his KLMN interest was $45,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that KLMN's debt did not change during the year. c. How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year? Complete this question by entering your answers in the tabs below. Required A Required B Required C How would your basis computation change if KLMN's debt at the end of the year was $28,000 more than its debt at the beginning of the year? Adjusted basis increases by $ 53,196 X