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    PARTNERSHIP ACCOUNTING AND TAXATION

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    Jim Johnson has 40% interest in Richards and Johnson, LLP. The partnership has the following activity for the year:
    Sales $180,000
    Cost of Goods Sold 105,000
    Guaranteed Payment to Ron Richards 25,000
    Depreciation 11,000
    Interest Expense 1,000
    Tax-Exempt Income 1,500
    Health Insurance Premiums for Jim Johnson 700
    Health Insurance Premiums for Ron Richards 700

    Calculate Jim's share of ordinary income from the partnership. Calculate Jim's share of separately stated items that will appear on his Schedule K-1 from Richards and Johnson, LLP.

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    Jim Johnson has 40% interest in Richards and Johnson, LLP. The partnership has the following activity for the year:
    Sales $180,000
    Cost of Goods Sold 105,000
    Guaranteed Payment to Ron Richards 25,000
    Depreciation 11,000
    Interest Expense 1,000
    Tax-Exempt ...

    Solution Summary

    Calculate Jim's share of ordinary income from the partnership. Calculate Jim's share of separately stated items that will appear on his Schedule K-1 from Richards and Johnson, LLP.

    $2.19

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