Question

KLMN Partnerships financial records show the following:
sales revenue	$ 500,000.00
selling expenses	$ 200,000.00
depreciation	$   30,000.00
long term capital gain	$     9,000.00
nondeductible expenses	$     2,000.00
partnership debts beginning of year	$ 100,000.00
partnership debts end of year	$ 120,000.00
Compute KLMNS ordinary business income for the year

Answer 1

Solution:
	KLMN Parternship
	Income Statement
	Revenues:	Amount	Amount
	Sales Revenue		$        5,00,000
	Less: Expenses
	Selling Expesnes	$            2,00,000
	Depreciation Expenses	$               30,000
	Total Expenses		$        2,30,000
	Net Income		$        2,70,000
Answer = Ordinary Income = $ 270,000