Prepare Schedule K for the current year

Reference no: EM132217929

Question - Streetcar General Partnership was created in the current year with the following partner contributions: Mike contributed $110,000 cash, Alex contributed $110,000 cash, and Pat contributed land with a tax basis of $140,000 and a fair market value of $360,000. The partnership assumed a $140,000 mortgage on the land; no partner is personally liable for the mortgage (nonrecourse liability). At the end of the current year Streetcar made a $14,000 payment on the mortgage. Mike, Alex, and Pat will split all profits and losses equally.

Sales revenue	$520,000
Cost of goods sold	410,000
Operating expenses	70,000
Long-term capital gains	2,400
Section 1231 Gains	900
Charitable contributions	700
Municipal bond interest	300
Salary paid as a guaranteed payment to Alex (not included in expense)	3,000

Prepare Schedule K for the current year from page 4 of Form 1065 and K-1 for Alex.

Reference no: EM132217929

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