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Question 12 Oscar Felix, and Mary are all one-third partners in the capital and profits of Eastside general partnership in addition to their normal share of the partnership's annual income, Oscar and Felix receive annual guaranteed payments of 57,000 to compensate them for additional services they provide Eastsides income statement for the current year relects the following revenues and expenses 5.405,000 5,700 Sales revenue Dividend income Short term capital gains Cost of goods sold 2.800 (210.000) Employee wages (215,000) Depreciation expense (28000) Guaranteed payments (14.000) Miscellaneous expenses 19.500) Overall net income 2009 In addon Lastide owed creditors $120,000 at the beginning of the year but managed to pay down its debts to $30,000 by the end of the you All partnership debitis located equally among the partner nally, Oscar Fox and Mary had a tax of 10,000 in the interests at the beginning of the year what tax banus dons Oscat have in his partnership Interests at the end of the year? Laurel contributed equipment worth $200,000, purchased 10 months ago for $240,000 cash and used in her sole proprietorship, to Sand Creek LLC in exchange for a 15 percent profits and capital interest in the LLC. Laurel agreed to guarantee all $20,000 of Sand Creek's accounts payable, but she did not guarantee any portion of the $100,000 nonrecourse mortgage securing Sand Creek's office building. Other than the accounts payable and mortgage Sand Creek does not owe any debts to other creditors What is Laurel's initial tax basis in her LLC interest? po QUESTION 12 Oscar, Fell, and Mary are one-third partners in the capital and profits of Eastside general partnership in to the normal share of the partnerships annual income. Oscar and Felix receive annual guaranteed payments of 57.000 to compensate them for con services they provide Eastside income statement for the current year reflects the following revenues and expenses Sales revenue Dividend income Short-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overal net income 5 405.000 5.700 2.800 (210.000 (115.000) (28.000) (14000) 19500) S_37.000 In addition Eastside wed creditors 5120 000 at the beginning of the year but managed to pay down its debts to $30.000 by the end of the partnership debt is allocated equally among the partners Finally, Oscar Febe and Mary had a wax basis of $80.000 in the interests at the begingo the year what tax basis does Oscar have in his partnership interests at the end of the year

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