Question
Rochelle is a partner in Megawatt Partnership. For 2017, her schedule K-1 from the partnership reported the following share of partnership items. Ordinary income $
Rochelle is a partner in Megawatt Partnership. For 2017, her schedule K-1 from the partnership reported the following share of partnership items.
| Ordinary income | $ | 25,000 | |
| Section 1231 loss | (3,000 | ) | |
| Nondeductible expense | 1,000 | ||
| Cash distribution | 5,000 | ||
Calculate the net impact of the given items on Rochelles 2017 taxable income.
Assume that Rochelles marginal tax rate is 35 percent. Calculate her 2017 after-tax cash flow as a result of her interest in Megawatt.
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Auditing ISO Management System
Authors: Dr. RAMESH R LAKHE, Dr. RAKESH L. SHRIVASTAVA, M M NAVEED, KRANTI P DHARKAR, Dr. C M SEDANI
1st Edition
1702203913, 978-1702203913
