Iris and Jeong File a Joint Return

question 98

Essay

Iris and Jeong file a joint return.Iris is an executive with a corporation,earning a $800,000 salary.Jeong is a 50% partner in JK Partnership.He works full-time in the partnership.Jeong's basis in his partnership interest at the beginning of the year is $1 million.In the current year,the partnership reports an ordinary loss of $1.2 million,half of which is allocated to Jeong.There were no separately stated items,no distributions made and no changes in liabilities.Iris and Jeong earned $100,000 of dividend income from their investment portfolio.They do not itemize deductions.
a.Determine 2019 taxable income for Iris and Jeong.
b.Discuss the treatment of any income or loss items not recognized in 2019.

Grasp the concept of international trade and the reasons behind it.

Understand the consequences of trade restrictions on economies.

Recognize the importance of the balance of payments and foreign exchange markets in international economics.

Understand the role of labor mobility, income sources, and the shift from rural to urban settings in economic development.

---

Definitions:

Average Total Cost

Average total cost is calculated by dividing the total cost of producing a given output level by the quantity of output, reflecting the average cost per unit of output produced.

Total Profit

The net income a business earns after subtracting all costs, expenses, and taxes from the total revenue.

Per Unit Profit

The profit earned from selling one unit of a product, calculated by subtracting the cost per unit from the selling price per unit.

MR = MC Rule

A principle in economics where the optimal level of output is reached when marginal revenue equals marginal cost.