Calculate Paul’s basis in his partnership interest.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 6CPA
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Paul and Wayne equally own PW
Sales | $ | 330,000 |
Cost of goods sold | 220,000 | |
Guaranteed payment to Paul | 40,000 | |
Rent expense | 24,000 | |
33,000 | ||
Interest expense | 4,000 | |
Tax-exempt income | 3,000 | |
Health insurance premiums for Paul | 3,600 | |
Health insurance premiums for Wayne | 3,600 | |
PW Partnership's non-financial information is as follows:
- Name: PW Partnership
- Address: 5 Furniture Street, Anywhere, NC 28777
- EIN: 56-1234567
- Date Partnership Began: 01/01/10
- Business Code: 442110
- Principal Business Activity: Retail
- Principal Product or Service: Furniture
- Follows the Cash Method of Accounting
b. Calculate Paul’s basis in his partnership interest.
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