Scenario

Craft Beer Brewing Partnership

Revenues	681,000
Office Rent	28,000
COGS	198,000
Salaries	238,000
ST Gain on Sale of Stock	100,000
LT Loss on Sale of Stock	500,000
Contributions to Charities	60,000
Investment Expenses	6,000

Friends Dan and Lisa are each partners in the beer brewing partnership above.

Dan owns 3%

Lisa owns 6%

Additional Information about Dan (not including partnership info)

Married, 1 child

Wages from job = $18,000

Wages from wifes job = $31,000

Additional Information about Lisa (not including partnership info)

Single, no children

Wages from job = 130,000

Sold stock held LT at a gain of 25,000

Paid state taxes of 8,900

Paid qualified mortgage interest of 10,000

1. By how much does Dans AGI increase because of the partnership activities?

2. By how much does Lisas taxable income decrease because of the partnership activities?