Reference no: EM13559476

51. Comprehensive Problem. Barbara Thompson and Colleen Tiller are equal partners in the Boteq partnership. Barbara is age 72 and Colleen age 58. Both are unmarried and the partnership is their sole source of income. During the current year, Boteq's records show the following items of income and expense. In a columnar form, list those items which must be reported as partnership ordinary income and those which must be reported separately by the partnership.
(1) Gross profit on sale of goods $40,000
(2) Selling and administrative expenses 30,000
Other items not included in above:
(1) Dividends from domestic corporations 1,000
(2) Charitable contributions to church 500
(3) Long-term capital gains 2,000
(4) Short-term capital losses 500
(5) Section 1245 gain on office equipment which had an adjusted basis at sale of $400 800
(6) Theft of day's receipts 1,200
(7) Theft of Barbara's fur coat in the pocket of which were the receipts. Original cost $2,500, FMV at date of theft $1,000
(8) Royalty check for Boteq's $10,000 investment this year in a widget mining venture 400
(9) Notice of Boteq's coal percentage depletion allowance of $1,000 (the property has been fully depleted for several years)
(10) Expensing of seven-year property under Code Sec. 179, purchased during the year 2,000
(11) Social Security benefit checks payable to Barbara which were regularly deposited to Boteq's account 4,500