C12-Chp-10-5-Illust-PTNR-Pearle-Schedule K

C12-Chp-10-5-Illust-PTNR-Pearle-Schedule K - 2 20,000...

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1048153efc50b1cddf3a4727be9df15fb46189a4.xls Old CPA Exam Question on Partnerships - Solution Dali and Conti D/B/A Perle Restaurant Tax Worksheet For Year Ended December 31, 1991 Information for Perle’s Income Perle’s Dali’s Statement Adjustments Deductions Schedule K Schedule K-1 Sales 900,000 900,000 Cost of Sales 360,000 360,000 Gross Profit 540,000 540,000 Operating Expenses Wages (Excluding Partners) 179,000 179,000 Less Jobs Credit (9,000) (9,000) 9,000 4,500 Guaranteed Payments to Partners 100,000 100,000 100,000 50,000 1 8,000 8,000 8,000 4,000 Amortization of permanent liquor license 1,000 (1,000) Annual Liquor license fee 500 500 Depreciation (Includes Sec. 179 Exp.) 26,000 2 (20,000) 6,000 Sec. 179 Expense deduction
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Unformatted text preview: 2 20,000 20,000 10,000 Partner’s health ins. premiums 8,000 1 (8,000) Keogh contributions ($7,000 for ptnrs) 12,500 (7,000) 5,500 7,000 3,500 Charitable contributions (value $53,000) 50,000 3 (50,000) 3 50,000 50,000 25,000 3,000 3,000 1,500 Note Total operating expenses 368,000 290,000 Operating (Ordinary) income 172,000 250,000 Other Income (loss): Dividends 1,600 (1,600) 1,600 800 Rental (300) 300 (300) (150) Other Expenses Interest on investment debt (800) 800 (800) (400) Total Income 172,500 Note: under old law, this appreciation was a tax preference, as is shown here. This case shows a way for the CPA Exam to quickly test you on your understanding of K-1 items....
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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