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This year, Herb Partnership generated $730,000 ordinary business income. Herb has two equal partners: Savory LLC and Sweet Corp., an S corporation. Savory LLC
This year, Herb Partnership generated $730,000 ordinary business income. Herb has two equal partners: Savory LLC and Sweet Corp., an S corporation. Savory LLC has three members: Mr. Parsley, an individual who owns a 45 percent interest; Mrs. Rosemary, an individual who owns a 35 percent interest; and Sage Inc., a C Corporation which owns a 20 percent interest. Sweet Corp. has 100 shares of outstanding stock, all of which are owned by Ms. Mint, an individual. Required: Identify the taxpayers who must pay tax on the partnership income, and determine how much income must be reported by each. If a taxpayer does not have to pay tax due to Herb Partnership's allocated income, put "0" for the answer. Amount of Income Allocated from Herb Partnership Mr. Parsley Mrs. Rosemary Sage Inc. Ms. Mint Savory LLC Sweet Corp.
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