contestada

On January 2 of the current​ year, Calloway and Taylor contribute cash equally to form the CT Partnership. Calloway and Taylor share profits and losses in a ratio of​ 75% and​ 25%, respectively. The​ partnership's ordinary income for the year was​ $40,000. Calloway received a distribution of​ $5,000 during the year. What is​ Calloway's share of taxable income for the​ year?

Respuesta :

Answer:

Calloway's share is $30,000

Explanation:

Partnership income for the year:           $40,000

Share of Calloway (75%)                  $30,000

Share of Taylor (25%)                          $10,000

Partnership’s ordinary income is to be distributed among Calloway and Taylor in their respective profit and loss sharing ratios of 75% and 25%. Based on the above calculations, Calloway’s share of Taxable Income for the year is $30,000.

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