Respuesta :
The business income of Georgia will be $1,395 and separately stated item's value is $5,505
1) business income:
Sales Revenue = $79,250
Less:
Cost of goods sold = ($42,250)
Depreciation = ($7,750)
Wages = ($19,400)
Guaranteed payment to Sandra = ($5,200)
Business income = $4650
Georgia's share = $4650*30/100 = $1,395
2) Georgia's share of separately stated item:
Gain on sale of land = $17,600 = 30%*17,600 = $5,280
deduction ($16,300) = 30%*16,300 = $4,890
Capital Gains $5,750 = 30%*5,750 = $1,725
Municipal bond interest $7,900 = 30%*7,900 = $2,370
Fines and penalties ($3,400) = 30%*3,400 = $1,020
Total = $5,280-$4,890+ $1,725 + $2,370 +$1,020 = $5,505
For tax reasons, business income is categorized as regular income and constitutes a sort of earned income. It comprises all earnings generated from an entity's activities. It is a company's net income or loss, which is determined by subtracting all of its revenue from all sources from all of its operating costs.
The complete question is here:
Georgia owns a 30 percent profits and capital interest in rain tree llc. for the current year, rain tree had the following revenues, expenses, gains, and losses:
Sales Revenue $79,250
Gain on sale of land (C1231) $17,600
COGS ($42,250)
Depreciation ($7,750)
§179 deduction ($16,300)
Wages ($19,400)
Fines and penalties ($3,400)
Municipal bond interest $7,900
Capital Gains $5,750
Guaranteed payment to Sandra ($5,200)
1) How much ordinary business income (loss) is allocated to Georgio for the year?
2) What are Georgio's separately stated items for the year?
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