On December 1 of year 1, Casey buys Nathan’s 1/3 interest in…
On December 1 of year 1, Casey buys Nathan’s 1/3 interest in COB Partnership. COB is a calendar-year partnership with total expenses of $360,000 for the year, $240,000 of which were accrued prior to December 1st. The remaining $120,000 of expense were incurred in December. The partnership’s total income is $360,000, which was earned equally over the taxable year. How much income and expense would Casey be allocated under the interim closing method?