JBean and D BList All of the Other Items That Need to Be

question 34

Essay

J.Bean and D.Counter formed a partnership.During the current year,the partnership had the following income and expenses:
a.Calculate the net ordinary income.
$\begin{array}{ll}\text { Gross income from operations } & \$ 135,000 \\\text { Gain on sale of antique abacus (a business asset) } & \$ 5,000 \\\text { Interest income from business bank account } & \$ 100\\\text { Deductions: }\\\text { Salaries to employees } & \$ 65,000 \\\text { Payroll taxes } & \$ 5,000 \\\text { Rent } & \$ 7,000 \\\text { Depreciation } & \$ 3,500 \\\text { Contribution to United Way charity } & \$ 2,000\\\text { Foreign tax paid on overseas business deals }&\$3,000\\\text { Distributions to the partners }&\$40,000\end{array}$
b.List all of the other items that need to be separately reported.
c.If the partnership is on a calendar year tax basis,when is the partnership tax return due?

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Definitions:

Capitalist Economies

Economic systems where capital assets are privately owned, and the production and distribution of goods and services are determined by competition in a free market.

Legal System

A legal system is a mechanism for creating, interpreting, and enforcing laws in a given jurisdiction, influencing the way justice is administered and how rights are protected.

Socialist Country

A nation whose government practices socialism, aiming for collective or governmental ownership and administration of the production and distribution of goods.

Redistribution of Income

Government policies or mechanisms aimed at adjusting the distribution of income among a population to achieve social or economic objectives.