How much income must dave report for the tax year

Assignment Help Accounting Basics
Reference no: EM131876081

Question - In the current year, the DOE Partnership received revenues of 100,000 and paid the following amounts: 20,000 in rent and utilities, a 30,000 guaranteed payment to 60% partner Dave, 6,000 to partner Ethan for consulting services, and 10,000 as a distribution to partner Olivia. In addition, the partnership earned 4,000 of interest income during the year. Dave's basis in his partnership interest was 35,000 at the beginning of the year, and include a 10,000 share of partnership liabilities. The partnership created 30,000 of liabilities during the year.

a. How much income must Dave report for the tax year and what is the character of the income?

b. What is Dave's basis in his partnership interest at the end of the tax year?

Reference no: EM131876081

Questions Cloud

Determine the benefit and total cost of ownership : When analyzing cost/benefit and total cost of ownership (TCO), should systems analysts concentrate most on payback analysis, net present value.
Who are some celebrity muslims : Who are some celebrity Muslims? Given what you now know of Islam, does the press accurately portray Muslims?
What other role might planners take on to be effective : Given the many different ways that planning bodies can accomplish their task and the diverse backgrounds of those involved, planners assumed different roles.
What will be new portfolio beta : What will be the new portfolio beta if you keep 86 percent of your money in the old portfolio and 14 percent in a stock with a beta of 0.63?
How much income must dave report for the tax year : The partnership created 30,000 of liabilities during the year. How much income must Dave report for the tax year and what is the character of the income
What does a study of character from different cultures teach : What does a study of characters from two different cultures teach you about those cultures?
What is his realized yield on bonds : Coupon payments are made semiannually. what is the market value of the bond? what is his realized yield on the bonds?
Impact of different structures and lines of authority : Given specifics about work flow or practices within an organization, compare and contrast the impact of different structures and lines of authority.
Analyze and describe the key controls : Disaster recovery planning is essential for a business to survive when unexpected events impact daily operations.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd