Reference no: EM133151247

Question - Gee, Raa, Tool and Co., CPAs (GRT & Co.), are partners of an accounting firm. The 2020 financial records of the firm disclosed the following:

Service revenue 4,490,000

Cost of services 1,610,000

Operating expenses 800,000

Rental income 500,000

Interest income from bank deposit 200,000

Interest income from FCDS deposit 280,000

Raa is also engaged in business with the following data for the year:

Gross sales 2,500,000

Cost of sales 1,250,000

Operating expenses 550,000

1. How much is the distributable income of the GPP?

a. 992,667

b. 1,019,333

c. 2,578,000

d. 2,978,000

2. How much is the distributive share of each partner in the total income of the GPP?

a. 992,667

b. 1,019,333

c. 2,578,000

d. 2,978,000

3. How much is the taxable income of Raa during the year?

a. 860,000

b. 1,510,000

c. 1,560,000

d. 2,580,000