Mr. B and Ms. G are equal general partners in the BG Partnership. Mr. B...
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Accounting
Mr. B and Ms. G are equal general partners in the BG Partnership. Mr. B receives a $4,000 monthly guaranteed payment for services. This year, BG Partnership generated $95,000 business profit (before consideration of Mr. Bs guaranteed payments).
a) Compute each partners distributive share of BGs ordinary business income.
b) Compute each partners net earnings from self-employment (the amount subject to self-employment tax).
c) How would your answers change if BGs profit was only $32,000 instead of $95,000?
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