Reference no: EM132635738
Question - The TimpRiders LP has operated a motorcycle dealership for a number of years. Lance is the limited partner, Francesca is the general partner, and they share capital and profits equally. Francesca works full-time managing the partnership. Both the partnership and the partners report on a calendar-year basis. At the start of the current year, Lance and Francesca had bases of $10,000 and $3,000, respectively, and the partnership did not carry any debt. During the current year, the partnership reported the following results from operations:
Net sales $650,000
Cost of goods sold $500,000
Operating expenses $160,000
Short-term capital loss $2,000
Tax-exempt interest $2,000
§1231 gain $6,000
On the last day of the year, the partnership distributed $3,000 each to Lance and Francesca.
Required - Using the information provided, fill out the Schedule K-1 for Lance & Francesca.