calclution, Taxation

Assignment Help:
Ask question #Minimum 100 words Problem 4-42 (LO. 3, 4)
Faye, Gary, and Heidi each have a one-third interest in the capital and profits of the FGH Partnership. Each partner had a capital account of $50,000 at the beginning of the tax year. The partnership profits for the tax year were $270,000. Changes in their capital accounts during the tax year were as follows:
Faye Gary Heidi Total
Beginning balance $50,000 $50,000 $50,000 $150,000
Withdrawals (20,000) (35,000) (10,000) (65,000)
Additional contributions -0- -0- 5,000 5,000
Allocation of profits 90,000 90,000 90,000 270,000
Ending balance $120,000 $105,000 $135,000 $360,000

In arriving at the $270,000 of partnership profits, the partnership deducted $2,400 ($800 for each partner) in premiums paid for group term life insurance on the partners. Faye and Gary are 39 years old, and Heidi is 35 years old. Other employees are also eligible for group term life insurance equal to their annual salary. These premiums of $10,000 have been deducted in calculating the partnership profits of $270,000.
Each partner''s gross income from the partnership for the tax year is $ .
accepted#

Related Discussions:- calclution

Compute income tax liability, Dan and Cheryl are married, file a joint retu...

Dan and Cheryl are married, file a joint return, and have no children. Dan is a pharmaceutical salesman and Cheryl is a nurse at a local hospital. Dan%u2019s SSN is 400-20-1000 and

Income from salary, Kyle worked as a free-lance software engineer for the f...

Kyle worked as a free-lance software engineer for the first three months of 2013. During that time, he earned $78,000 of self-employment income. On April 1, 2013, Kyle took a job a

Cumulative software problem, albert''s granfather died and left a portafolo...

albert''s granfather died and left a portafolo of municipal bonds. in 2016, the pay ivan $80.000 in tax-free interest. since the bonds

Tax liability calculation, The XYZ Corporation has total earnings of $20 mi...

The XYZ Corporation has total earnings of $20 million and decides to pay its stockholders a dividend of $8 million. If the corporate tax rate is 30% and the personal tax rate on in

Compute the service and interest cost for 2012, Sachs Brands' defined benef...

Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.2% × current service years × final year's salary, payable at the end of each year. Angel

Determine the amount of tax, Bass River Furniture operates a manufacturing ...

Bass River Furniture operates a manufacturing business in Bass River, Nova Scotia. On June 8, 2010, Bass River purchased an asset for an invoice price before HST of $1,800,000.  Th

Income tax basis, Income Tax Basis - (1) For tax purposes, concept of basis...

Income Tax Basis - (1) For tax purposes, concept of basis determines proper amount of gain to report when an ASSET is sold. Basis is usually the cost paid for an asset plus amounts

Tax law and practice, presumptive tax is one way of enforcing compliance wi...

presumptive tax is one way of enforcing compliance with the tax requirements.you are required to define presumptive tax and give examples of situations where presumptive tax is app

Income tax return, Required: ? Use the following information to complete...

Required: ? Use the following information to complete Phillip and Claire Dunphy's 2012 federal income tax return. If information is missing, use reasonable assumptions to fil

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd