How much is partnerships ordinary income

Assignment Help Financial Accounting

Reference no: EM131292209

During 2017, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits interest and performs no services for the partnership during the year. For services performed in 2017, Stella receives a “salary” of $6,000 per month. Euclid withdrew $10,000 from the partnership during the year.

If required, round your answers to the nearest dollar.

a. What is the amount of guaranteed payments made by the partnership during 2017? $

b. How much is the partnership’s ordinary income after any deduction for guaranteed payments? $

c. For 2017, how much income will Stella and Euclid report?

Stella: $

Euclid: $

Reference no: EM131292209

Questions Cloud

Should the city accept the offer from private corporation : A city operates a computer service department. The department maintains and repairs the computers of all other city departments, billing them for each job performed. Based on the limited data provided, should the city accept the offer from the privat..

How much is partnerships ordinary income : During 2017, the Tastee Partnership reported income before guaranteed payments of $92,000. Stella owns a 90% profits interest and works 1,600 hours per year in the business. Euclid owns a 10% profits interest and performs no services for the partners..

Effective annual interest rate that rick is charging : Rick, the owner of the local pawn shop, loans money at an annual rate of 23 percent with weekly compounding. What is the effective annual interest rate that Rick is charging? Doug saved $1,400 at the end of each year for 35 years. If Doug earned 6 pe..

Prepare shedule of budgeted cash receipts : Asper Company has sales on account and cash. Speccially, 70 % of its sales are on account and 30% are for cash. credit sales are collected in full in the month following the sale. the company forescast sales of $525.000 for april, $535.000 for may, a..

?nancial statements on a near-cash basis : Assume that you are a loan of?cer of a bank. A local church is seeking a $4 million, 20-year loan to construct a new classroom building. Church of?cers submit a comprehensive ?nancial report that was audited by a reputable CPA ?rm. The church prepare..

What is the break-even point in unit sales and dollars sales : Awree NatCacnotus Inc, an innovative company located somewhere on the beautiful winding slopes of Pacific Northwest (a great place for hiking), produces and sales a single product, Metadite, an organic cream used for a variety of home first and uses...

Cost of goods sold under each of assumed cost flow methods : A Sekhon Company had a beginning inventory on January 1 of 165 units of Product 4-18-15 at a cost of $18 per unit. During the year, the following purchases were made. Determine (1) the ending inventory, and (2) the cost of goods sold under each of th..

User Account

All Pages