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Axel is a calendar-year taxpayer. He is a 25% partner in GNR Partnership, which uses an August 31 fiscal year-end. GNR Partnership had $120,000 of ordinary income for the year ended August 31, 2004 and $150,000 of ordinary income for the year ended August 31, 2005. Axel withdrew $50,000 from the partnership on December 1, 2004 when he had a basis of $138,000 in the partnership. What amount should Axel report on her 2004 tax return as ordinary income from GNR Partnership?
If a plant assests of a manufacturing company are sold at a gain of $820,000 less related taxes of $250,000, and the gain is not considered unusual or infrequent, the income statement for the period would disclose these effects as:
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