Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their begin basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: Income $336,123 Interest income 1,259 4,586 Dividend income (qualified) Long-term capital gains Total revenue 13,458 $355,426 Expenses Salaries and wages (nonpartners) Guaranteed payments Williams $ 47,000 75,000 50,000 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) 41,888
Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their begin basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year: Income $336,123 Interest income 1,259 4,586 Dividend income (qualified) Long-term capital gains Total revenue 13,458 $355,426 Expenses Salaries and wages (nonpartners) Guaranteed payments Williams $ 47,000 75,000 50,000 Johnson Depreciation (MACRS-includes $9,000 § 179 expense) 41,888
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BCRQ
Related questions
Question
What is the ending basis for Phil Williams and Liz Johnson? (Round your intermediate calculations to nearest whole dollar value.)
Transcribed Image Text:Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning
basis is $33,000 for Phil and $31,000 for Liz. The partnership had the following activity during the year:
$336,123
1,259
4,586
13,458
$355,426
Income
Interest income
Dividend income (qualified)
Long-term capital gains
Total revenue
Expenses
Salaries and wages (nonpartners)
Guaranteed payments
$ 47,000
Williams
75,000
50,000
41,888
5,220
15,548
15,257
5, 254
Johnson
Depreciation (MACRS-includes $9,000 § 179 expense)
Interest expense
Taxes and licenses
Meals (100%)
Auto
Insurance (nonpartner health)
Accounting and legal
Repairs
Charitable contributions
Payroll penalties
Total expenses
6,000
2,800
1, 200
2,500
500
$268,167
Net income
$ 87, 259
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,