Refer to the Facts in the Preceding Problem A Compute Ted's Share of Partnership Ordinary Income and Separately

question 24

Essay

Refer to the facts in the preceding problem. Ted is a 20 percent general partner in Bevo.
Bevo Partnership had the following financial activity for the year:
$$\begin{array} { l c } \text { Gross receipts from sales } & \$ 860,000 \\\text { Cost of goods sold } & ( 390,000 ) \\\text { Operating expenses } & ( \mathbf { 1 8 0 , 0 0 0 } ) \\\text { Business meals and entertainment } & ( 20,000 ) \\\text { Section 1231 gain on equipment sale } & \mathbf { 5 , 0 0 0 } \\\text { Distribution to partners } & ( \mathbf { 7 5 , 0 0 0 } )\end{array}$$ a. Compute Ted's share of partnership ordinary income and separately stated items.
b. If Ted's adjusted basis in his Bevo interest was $30,000 at the beginning of the year, compute his adjusted basis at the end of the year. Assume that Bevo's debt did not change during the year.
c. How would your basis computation change if Bevo's debt at the end of the year as $50,000 less than its debt at the beginning of the year?

Identify cost behavior and how costs respond to changes in business activity.

Understand the concept of relevant range and its importance in cost behavior.

Analyze the effects of cost behavior on decision making.

Understand the concept of telecommuting and its advantages for both employees and organizations.

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Definitions:

British Evangelicals

British followers of Evangelicalism, emphasizing the authority of the Bible, the importance of personal conversion, and activism.

American Churches

Institutions of religious worship in the United States, encompassing a wide range of Christian denominations, practices, and cultural influences.

Religious Persecutions

The unfair or abusive treatment towards individuals or groups because of their religious beliefs.

Conversion of Indians

The process of influencing indigenous peoples to adopt different religious beliefs, often to Christianity, during European colonization.