Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a
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Burgundy, Inc., and Violet Gomez are equal partners in the calendar year BV LLC. Burgundy uses a fiscal year ending April 30, and Violet uses a calendar year. Burgundy receives an annual guaranteed payment of $100,000 for use of capital contributed by Burgundy. BV's taxable income (after deducting the payment to Burgundy) is $80,000 for 2018 and $90,000 for 2019.
a. How much income from BV must Burgundy report for its tax year ending April 30, 2019?
b. How much income from BV must Violet report for her tax year ending December 31, 2019?
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a In its April 30 2019 tax return Burgundy Inc must report income from BV LLC of 140000 This inc...View the full answer
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Related Book For 
South-Western Federal Taxation 2019 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337702966
22nd Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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