Question

J. Bean and D. Counter formed a partnership. During the current year, the partnership had the following income and expenses:

  

Gross income from operations	$135,000
Gain on sale of antique abacus (a business asset)	4,000
Interest income from business bank account ​	100 ​
Deductions:	​
Salaries to employees	$65,000
Payroll taxes	5,000
Rent	8,000
Depreciation	3,500
Contribution to United Way charity	2,000
Foreign tax paid on overseas business deals ​	3,000 ​
Distributions to the partners	$40,000

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a. Calculate the net ordinary income.
b. List all of the other items that need to be separately reported.
c. If the partnership is on a calendar year tax basis, when is the partnership tax return due?

Answer 1