Partner\'s Distributive Shares. On January of the current year, Becky (20%), Chu
ID: 2425683 • Letter: P
Question
Partner's Distributive Shares. 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 What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year? Assume that Becky purchases a 5% partnership interest from Chuck on July 1 so that Becky 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?Explanation / Answer
Ordinary Income 120000 Long termcapital gain 18000 Short Term capital loss -6000 Charitable contribution -20000 Total 112000 Ans 1 Becky 20% 22400 Chuk 30% 33600 Dawn 50% 56000 Total 112000 Ans 2 Loss will be distributed as it is on March 2 B Becky 20% 1200 Chuk 30% 1800 Dawn 50% 3000 Total -6000 Date: July 1= 118000 will be distributed A Becky 25% 29500 Chuk 25% 29500 Dawn 50% 59000 Total 118000 So finally at the year end the shares are A-B Becky 25% 28300 Chuk 25% 27700 Dawn 50% 56000 Total 112000