Problem 10-37 (Algorithmic) (LO. 6, 7, 8, 9, 10, 11)Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing memberof the LLC (treated as a general partner) and is a U.S. person.At the beginning of the current tax year, Amy's tax basis capital account has a balance of $736,000, and the LLC has debts of $478,400payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Thefollowing information about AM's operations for the current year is obtained from the LLC's records.Operating incomeW-2 wagesDepreciation expenseInterest incomeLong-term capital lossLong-term capital gainCharitable contribution (cash)Cash distribution to AmyUnadjusted basis of partnership propertyimmediately after acquisition$1,104,000200,000300,00011,0407,36022,08011,09055,2001,600,000Operating income equals revenue less operating expenses (other than expenses listed separately above).Year-end LLC debt payable to unrelated parties is $334,880. Assume that all transactions are reflected in Amy's beginning capital and basisin the same manner. Also assume that all AM Products' activities are eligible for the qualified business income deduction b. What income, gains, losses, and deductions does Amy report on her income tax return?If an amount is zero, enter "0".Ordinary incomeNet long-term capital gainInterest incomeCharitable contribution deductionCash distribution446,455 X7,3605,5205,5450

Taxable income is the part of gross income which is taxable by the government, calculated by adding…

Answered: b. What income, gains, losses, and…

Income Tax Fundamentals 2020

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Chapter10: Partnership Taxation

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Problem 12MCQ

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LO.7, 9, 10 Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy’s capital account has a balance of $300,000, and the LLC has debts of $200,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM’s operations for the current year is obtained from the LLC’s records. Ordinary income $ 900,000 W–2 wages to employees 200,000 Depreciation expense 300,000 Interest income 4,000 Short-term capital loss 6,000 Long-term capital gain 12,000 Charitable contribution (cash) 4,000 Cash distribution to Amy 20,000 Unadjusted basis of partnership depreciable property 1,600,000 Year-end LLC debt payable to unrelated…
Subject:accounting Jorge and Anita, married taxpayers, earn $144,500 in taxable income and $54,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: If Jorge and Anita earn an additional $107,000 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $107,000 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)
Amy and Mitchell share equally (50%) in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $780,000, and the LLC has debts of $507,000 payable to unrelated parties. All debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income* $1,170,000 W-2 wages 200,000 Depreciation expense 300,000 Interest income 11,700 Long-term capital loss 7,800 Long-term capital gain 23,400 Charitable contribution (cash) 11,750 Cash distribution to Amy 58,500 Unadjusted basis of partnership property 1,600,000 immediately…
Business entity taxes for companies in the US. Jacob and Johny form and LLC that is treated as a partnership for federal income tax purposes. Jacob contributes property with a tax basis of $400 and fair market value of $500. In return Jacob receives a 40% ownership interest in the LLC. Johny contributes property with a tax basis of $1,100 and fair market value of $1,300. In return Johny receives a 60% ownership interest in the LLC. a. How much gain or loss does Jacob realize? b. How much gain or loss does Jacob recognize? c. What is Jacob’s initial outside basis? d. What is the partnership’s tax basis (inside basis) in the property contributed by Jacob? e. What is Brady’s initial outside basis?\ f. What is Brady’s initial book capital account balance?
Problem 1-39 (LO 1-3) (Algo) Jorge and Anita, married taxpayers, earn $159,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Jorge and Anita earn an additional $109,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $109,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
Problem 14-10 (Algorithmic) (LO. 2) Kenisha and Shawna form the equal KS LLC, with a cash contribution of $416,000 from Kenisha and a property contribution (adjusted basis of $436,800, fair market value of $416,000) from Shawna. If an amount is zero, enter "0". a. Shawna has realized o : of which $ is recognized. b. Kenisha's tax basis in her LLC interest is $ c. Shawna's tax basis in her LLC interest is d. The tax basis that the partnership takes in the property transferred by Shawna is $ e. Are there more effective ways to structure the formation?
LO.2 Enercio contributes $100,000 in exchange for a 40% interest in the calendar year ABC LLC, which is taxed as a partnership. This year, the LLC generates $80,000 of ordinary taxable income. Enercio withdrew $10,000 from the partnership during the year. Enercio is taxed on what amount of ABC’s income? On how much of the $10,000 distribution will Enercio be taxed?
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Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $692,000, and the LLC has debts of $449,800 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records. Operating income* $1,038,000 W-2 wages 200,000 Depreciation expense 300,000 Interest income 10,380 Long-term capital loss 6,920 Long-term capital gain 20,760 Charitable contribution (cash) 10,430 Cash distribution…
Problem 1-39 (LO 1-3) (Static) Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,000 in deductions? (For all requirements, round your answers to 2 decimal places.) a. b. arginal tax rate. Marginal tax rate % %
Jose Mari owns 20% of the capital and profits of a general professional partnership. The partnership reported P500,000 profits in 2021. How much final tax will be withheld from Jose Mari" P100,000 P50,000 P10,000 PO
Scott and Bonnue, married taxpayers, earn $258,000 in taxable income and $7.700 in interest from an investment in City of Tampa bonds. Using the 2023 U.S. tax rate schedule for married filing jointly, answer the following question regarding their tax rates. What is their effective tax rate? Blank 1 Blank 1 Add your answer

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b. What income, gains, losses, and deductions does Amy report on her income tax return? If an amount is zero, enter "0". Ordinary income Net long-term capital gain Interest income Charitable contribution deduction Cash distribution 446,455 X 7,360 5,520 5,545 0