Problem 14-54 (LO 14-2, 14-3) Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the following amounts: Ordinary income Guaranteed payment Long-term capital gain 5 1231 gain Charitable contributions $ 179 expense Cash distribution Required: a. What is Wade's self-employment income? $ 43,000 12,000 15,500 4,300 2,000 b. Calculate Wade's basis at the end of the year. 18,000 6,000 a. Self-employment income b. Ending basis Amount
Problem 14-54 (LO 14-2, 14-3) Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the following amounts: Ordinary income Guaranteed payment Long-term capital gain 5 1231 gain Charitable contributions $ 179 expense Cash distribution Required: a. What is Wade's self-employment income? $ 43,000 12,000 15,500 4,300 2,000 b. Calculate Wade's basis at the end of the year. 18,000 6,000 a. Self-employment income b. Ending basis Amount
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 8MCQ
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Transcribed Image Text:Problem 14-54 (LO 14-2, 14-3)
Wade has a beginning basis in a partnership of $23,000. His share of income and expense from the partnership consists of the
following amounts:
Ordinary income
Guaranteed payment
Long-term capital gain
5 1231 gain
Charitable contributions
$ 179 expense
Cash distribution
Required:
a. What is Wade's self-employment income?
$ 43,000
12,000
15,500
4,300
2,000
b. Calculate Wade's basis at the end of the year.
18,000
6,000
a. Self-employment income
b. Ending basis
Amount
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