Year 1 - a new partnership is formed with 3 partners M.N.O Each contributes $100,000 The partnership has $120,000 of income (same for accounting/tax) each partner draws $25,000 At the end of year 1- the partnership adds an equal partner for $80,000 each Year 2 Reserve for tax 90000 Revenue Gain Dividend-Eligible 1,000,000 50,000 60,000 CCA 250000 Expenses Depreciation Charitable Donation Meals Other (20000 non deductable for tax) Partner wages-equal (300,000) (50,000) (30,000) (100,000) (600,000) Net Income 30,000 Beginning of year 3 - Admirt new partner for $90,000 each prepare a continuity on partners' capital for accounting/tax determine partners income for year 3 determine NRTC and Charitable amounts partners can use on their personal returns Year 1 - a new partnership is formed with 3 partners M.N.O Each contributes $100,000 The partnership has $120,000 of income (same for accounting/tax) each partner draws $25,000 At the end of year 1- the partnership adds an equal partner for $80,000 each Year 2 Reserve for tax 90000 Revenue Gain Dividend-Eligible 1,000,000 50,000 60,000 CCA 250000 Expenses Depreciation Charitable Donation Meals Other (20000 non deductable for tax) Partner wages-equal (300,000) (50,000) (30,000) (100,000) (600,000) Net Income 30,000 Beginning of year 3 - Admirt new partner for $90,000 each prepare a continuity on partners' capital for accounting/tax determine partners income for year 3 determine NRTC and Charitable amounts partners can use on their personal returns