Sandi and Jodie Are Partners Who Operate Household Humanities AHow Must Household Report These Results to Sandi and Jodie

question 94

Essay

Sandi and Jodie are partners who operate Household Humanities.Sandi owns 60% and Jodie owns 40% of Household.During the current year,Household has the following results:
$$\begin{array} { l r } \text { Revenues } & \$ 165,000 \\\text { Operating expenses } & 45,000 \\\text { Sandi's salary } & 50,000 \\\text { Jodie's salary } & 45,000 \\\text { Municipal bond interest income } & 3,000 \\\text { Long-term capital loss } & 30,000 \\\text { Charitable contributions } & 10,000\end{array}$$
a.How must Household report these results to Sandi and Jodie? Show calculations.
b.Sandi is a head of household with two dependent children (ages 17 and 18). She has $19,000 of other income, which includes a $6,000 short-term capital gain. Sandi has $16,750 of other allowable itemized deductions. Calculate Sandi's taxable income and income tax liability.