Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Luke AND Austin partnership reported the following items of income and deduction during the current tax year: revenues, $ 3 0 0 , 0

The Luke AND Austin partnership reported the following items of income and deduction during the current tax year: revenues, $300,000 cost of goods sold, $160,000 tax-exempt interest income, $2,000 salaries to employees, $80,000 and long- term capital gain, $10,000. It paid business interest expense of $18,000 and investment interest expense of $2,000. In addition, the partnership distributed $20,000 of cash to 50% partner Luke and $10,000 of cash to 50% partner Austin.
What is Lukes share of ordinary partnership income and separately stated items?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Audit Control And Security

Authors: Robert R. Moeller

1st Edition

0471406767, 9780471406761

More Books

Students also viewed these Accounting questions