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On January of the current year, Becky (20%), Chuck (30%), and Dawn (50%) are partners in the BCD Partnership. During the current year, BCD reports the following results. All items occur evenly throughout the year unless otherwise indicated.
Assume the current year is not a leap year.
a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year?
b. Assume that Becky purchases a 5% partnership interest from Chuck on July 1 so that Becky and Chuck each own 25% from that date through the end of the year.
What are Becky and Chuck's distributive shares for the current year?
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