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Problem 4-42 (LO. 3, 4) Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner
Problem 4-42 (LO. 3, 4) Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $50,000 at the beginning of the tax year. The partnership profits for the tax year were $270,000. Changes in their capital accounts during the tax year were as follows: Faye Gary Heidi Total Beginning balance $50,000 $50,000 $50,000 $150,000 Withdrawals (20,000) (35,000) (10,000) (65,000) Additional contributions 0 0 5,000 5,000 Allocation of profits 90,000 90,000 90,000 270,000 Ending balance $120,000 $105,000 $135,000 $360,000 Compute each partner's gross income from the partnership for the tax year. Each partner's gross income from the partnership for the tax year is $ X. Problem 4-44 (LO. 3) Liz and Doug were divorced on December 31, 2020, after 10 years of marriage. Their current year's income received before the divorce was as follows: Doug's salary $41,000 Liz's salary 55,000 Rent on apartments purchased by Liz 15 years ago 8,000 Dividends on stock Doug inherited from his mother 4 years ago 1,900 Interest on a savings account in Liz's name funded with her salary 2,400 Allocate the income to Liz and Doug assuming that they live in: a. California. Doug: $ Liz: $ b. Texas. Doug: $ Liz: $
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