Question

partner x is 50% partner in xy partnership

machine 9000 basic 21000 value

land 80000 basic 100000 value

note 1 15000 basic 15000 value

note 2 90000 basic 90000 value

deprecation on the machine was allocated to 1/3 to x and 2/3 to y both notes are recourse if partner x capital account is (5000) and Y neg capital account (10000) how much f the partnership taxable income if 18000 will be allcated to y

Answer 1

Answer:

Taxable income of XY partnership that will be allocated to Y will be $ 9,000.

Note:

It is given that the share of partner X in XY partnership is 50%. Therefore, share of Y = 50%.

Taxable income of partnership is $ 18,000 , will be allocated to X and Y in their profit and loss sharing ratios ( i.e, 50:50).

Therefore,

Taxable income allocated to Y = $18,000 ÷ 50% = $9,000