QUESTION 19

Jayanthi and Krish each own a 50 percent general partner interest in the JK Partnership. The following information is available regarding the partnerships 2017 activities.

Sales revenues	$500,000
Selling expense	200,000
Depreciation expense	30,000
Long-term capital gain	9,000
Non-deductible expenses	2,000
Partnership debts, beginning of the year	100,000
Partnership debts, end of the year	120,000
Partnership distribution:
Jayanthi	50,000
Krish	50,000

a- Calculate the partnerships ordinary income?

b- Calculate Jayanthis allocable share of partnership items?

c- If Jayanthi has no other source of taxable income, what is her total gross income for 2017?

d- At the beginning of the year, Jayanthis adjusted tax basis in her partnership interest was $25,000. Calculate her ending adjusted tax basis in her partnership interest?