T11F-Chp-14-2-HW-Sol-Ptshp-Corp--Op and Dist

T11F-Chp-14-2-HW-Sol-Ptshp-Corp--Op and Dist - Page 1 of 3...

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182f956049c9c9ebc3c175acfb6e4c5fb38da73d.doc. Page 1 of 3 Name: Home work-Chapter 14. 1 In computing the ordinary business income of a partnership, a deduction is allowed for: a. Section 179 Write-off. b. Rent Expense B c. Short-term capital losses. d. Contributions to qualified charities. Net Income from operations $170,000 Tax exempt interest income $10,000 Dividends from corporations $5,000 Long-term capital gains $20,000 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)? a. $85,000 b. $95,000 c. $97,500 d. $170,000 A 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: a. $11,000 b. $20,000 c. $21,000 d. $23,000 e. none of these C 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. $11,000 b. $10,000 c. $7,000 d. $18,000 D 5 A corporation reports the following information for the current year: Sales $500,000 Cost of sales and normal operating expenses 400,000 Capital loss on sale of temporary stock investments held 2 months 8,000 What it the amount of the corporation’s taxable income for the current year? a. $100,000 b. $92,000 c. $108,000 d. Other A 6 Local Corporation had the following items of income and expenses in the current year: Income from operations $500,000 Expenses of operations 400,000 Net Operating Income 100,000 Dividend income from Cooper Corporation (a 10% owned corporation)
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T11F-Chp-14-2-HW-Sol-Ptshp-Corp--Op and Dist - Page 1 of 3...

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