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Required information Skip to question [The following information applies to the questions displayed below.] The...

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Accounting

Required information Skip to question [The following information applies to the questions displayed below.] The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $17,600, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results: Sales revenue $ 88,000 Gain on sale of land (1231) 8,700 Cost of goods sold (35,700) DepreciationMACRS (11,000) Employee wages (20,000) Cash charitable contributions (5,400) Municipal bond interest 5,400 Other expenses (6,400) (Negative amounts should be indicated by a minus sign.) a-1. How much ordinary income (loss) is allocated to Gary for the year? a-2. Compute Garys share of separately stated items to be reported on his year 1 Schedule K-1, including his self-employment income (loss).

b. Compute Garys share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner.

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