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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. Ordinary income $120,000 Long-term capital gain (recognized September 1) 18,000 Short-term capital loss (recognized March 2) 6,000 Charitable contribution (made October 1) 20,000 a- What are the distributive shares for each partner, assuming they all continue to hold their interest at the end of the year? b- Assume the Becky purchases a 5% partnership interest from Chuck on July 1 so that Beck 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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Identify and strengths and/or weakness you identified in your analysis. and Any recommendations you feel are warranted at this time.
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