Jiang and Jackson are equal partners in J83 Partnership. Both partners start Year 1 with an outside basis of $10,000. Using the following information below, determine (1) the recognized income or loss for each partner and (2) the end-of-year outside basis for each partner: If an amount is zero, enter "0". 1. Year 1: J&J generates $6,000 of ordinary business income, allocates total municipal bond interest of $300 and allocates non-deductible fines of $100. 2,800 X 12,800 X Recognized Income or loss End-of-year outside basis Feedback Check My Work 2. Year 2: J&J generates a $20,000 loss that includes a deduction for a guaranteed payment of $2,000 to Jiang. Both Jang and Jackson receive a cash distribution from the partnership of $7,100 each. Recognized income or loss End-of-year outside basis Feedback Check My Mnd 9,000 X 3,800 X 3. Year 3: 363 generates ordinary business income of $4,000 and long-term capital gains of $1,000, Jiang receives a guaranteed payment of $2,000. Recognized income or loss End-of-year outside basis Feedback
Jiang and Jackson are equal partners in J83 Partnership. Both partners start Year 1 with an outside basis of $10,000. Using the following information below, determine (1) the recognized income or loss for each partner and (2) the end-of-year outside basis for each partner: If an amount is zero, enter "0". 1. Year 1: J&J generates $6,000 of ordinary business income, allocates total municipal bond interest of $300 and allocates non-deductible fines of $100. 2,800 X 12,800 X Recognized Income or loss End-of-year outside basis Feedback Check My Work 2. Year 2: J&J generates a $20,000 loss that includes a deduction for a guaranteed payment of $2,000 to Jiang. Both Jang and Jackson receive a cash distribution from the partnership of $7,100 each. Recognized income or loss End-of-year outside basis Feedback Check My Mnd 9,000 X 3,800 X 3. Year 3: 363 generates ordinary business income of $4,000 and long-term capital gains of $1,000, Jiang receives a guaranteed payment of $2,000. Recognized income or loss End-of-year outside basis Feedback
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:Jiang and Jackson are equal partners in J83 Partnership. Both partners start Year 1 with an outside basis of $10,000. Using the following information below, determine (1)
the recognized income or loss for each partner and (2) the end-of-year outside basis for each partner:
If an amount is zero, enter "0".
1. Year 1: 363 generates $6,000 of ordinary business income, allocates total municipal bond interest of $300 and allocates non-deductible fines of $100.
2,800 X
12,800 X
Recognized income or loss
End-of-year outside basis
Feedback
Check My Work
2. Year 2: J8J generates a $20,000 loss that includes a deduction for a guaranteed payment of $2,000 to Jiang. Both Jiang and Jackson receive a cash distribution from
the partnership of $7,100 each.
Recognized income or loss
End-of-year outside basis
Feedback
Check My Wick
9,000 X
3,800 X
3. Year 3: 363 generates ordinary business income of $4,000 and long-term capital gains of $1,000, Jiang receives a guaranteed payment of $2,000.
Recognized income or loss
End-of-year outside basis
Feedback
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