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The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,600, and that Gary and Prudence will
The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $13,600, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue Gain on sale of land (51231) Cost of goods sold Depreciation-MACRS Employee wages Cash charitable contributions Municipal bond interest Other expenses $ 82,000 6,400 (37,500) (13,800) (17,900) (4,200) 4,850 (5.000) Note: Negative amounts should be indicated by a minus sign. Required: a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income floss). Compute Gary's share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employ income (loss). Note: Round your intermediate computations and final answers to the nearest whole dollar amount. Description Total Amount Allocated to Gary Separately Stated Items on Schedule K-1 < Required A1
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