Question
Problem 10-4 Partnership Formation (LO 10.2) K&T Company is a partnership with two equal partners, Kai and Taonga. The partnership has income for the year
Problem 10-4
Partnership Formation (LO 10.2)
K&T Company is a partnership with two equal partners, Kai and Taonga. The partnership has income for the year of $60,000 before guaranteed payments. Guaranteed payments of $25,000 are paid to Kai during the year.
Calculate the amount of income that should be reported by Kai and Taonga from the partnership for the year.
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Problem 10-4 (Algorithmic) Partnership Formation (LO 10.2)
Elaine's original basis in the Hornbeam Partnership was $77,100. Her share of the taxable income from the partnership since she purchased the interest has been $308,400, and Elaine has received $231,300 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $38,550 of tax-exempt interest to Elaine.
Calculate Elaine's current basis in her partnership interest. $
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