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Home work-Chapter 14.
1 In computing the ordinary business income of a partnership, a deduction is allowed for:
Section 179 Write-off.
Short-term capital losses.
Contributions to qualified charities.
Net Income from operations
Tax exempt interest income
Dividends from corporations
Long-term capital gains
Partners Fred and Joan share the profits and losses equally. What is Fred’s share of the partnership income
(excluding all partnership items which must be accounted for separately)?
3 Jane Doe invested $20,000 for a one-third interest in capital and profits of a partnership.
After her investment, the partnership had total taxable income of $24,000 and nontaxable income of $6,000.
Jane withdrew $9,000.
After these events, the tax basis of Jane's interest in the partnership is:
none of these
4 Sam purchased 50% of a calendar year partnership, for $7,000 on 1-1-Year-1.
At the end of Year-1, the
partnership has debt of $12,000.
The partnership had net income of $10,000 but did not make distributions
to the partners in Year-1. What is Sam’s basis in the partnership interest on 1-1-Year-2?
A corporation reports the following information for the current year:
Cost of sales and normal operating expenses
Capital loss on sale of temporary stock investments held 2 months
What it the amount of the corporation’s taxable income for the current year?
Local Corporation had the following items of income and expenses in the current year:
Income from operations
Expenses of operations
Net Operating Income
Dividend income from Cooper Corporation (a 10% owned corporation)