AT Pet Spa Is a Partnership Owned Equally by Travis

question 52

Essay

AT Pet Spa is a partnership owned equally by Travis and Ashley. The partnership had the following revenues and expenses this year. Which of the following items are separately stated? Nonseparately stated? What is each partner's distributive share of ordinary income?
$\begin{array}{ll}\text { Revenues } & \$ 500,000 \\\text { Salary expense (nonpartners) } & 250,000 \\\text { Supplies } & 40,000 \\\text { Insurance } & 50,000 \\\text { Depreciation (no Sec. 179 amounts) } & 10,000 \\\text { Dividend income } & 2,000 \\\text { Long-term capital gain } & 30,000\end{array}$

---

Definitions:

Public Sector Accounting Board

A body responsible for setting accounting standards for governmental and other public sector entities.

Tax Revenue

Income that the government receives from taxpayers, including both individuals and businesses, used to fund public services and obligations.

Tax Concessions

Special exemptions, deductions, or credits provided in the tax code to encourage certain business activities or investments.

Qualitative Characteristics

The attributes that make the information provided in financial statements useful to users, such as relevance and reliability.