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The ABCD partnership agreement provides that D will receive…
The ABCD partnership agreement provides that D will receive 25% of partnership ordinary income before taking into account any guaranteed payment, but not less than $100,000. All capital gains will be split equally among the partners. For the year the partnership has $200,000 of ordinary income (before the guaranteed payment) and $80,000 of long term capital gains. a. How much is D’s guaranteed payment? b. How much is her share of ordinary income? c. How much is her share of long term capital gains? d. How much, in total, of the ordinary income and long term capital gain will the other partners be allocated?
The ABCD partnership agreement provides that D will receive…
Questions
The ABCD pаrtnership аgreement prоvides thаt D will receive 25% оf partnership оrdinary income before taking into account any guaranteed payment, but not less than $100,000. All capital gains will be split equally among the partners. For the year the partnership has $200,000 of ordinary income (before the guaranteed payment) and $80,000 of long term capital gains. a. How much is D’s guaranteed payment? b. How much is her share of ordinary income? c. How much is her share of long term capital gains? d. How much, in total, of the ordinary income and long term capital gain will the other partners be allocated?
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