Lloyd and Harry,equal Partners,form the Ant World Partnership Given These Items,what Amount of Ordinary Business Income (Loss)and What

question 72

Essay

Lloyd and Harry,equal partners,form the Ant World Partnership.During the year,Ant World had the following revenue,expenses,gains,losses,and distributions:
$\begin{array} { l l r } \text { Cost of Goods Sold } & \$ 85,000 \\\text { Cash Distribution to Harry } & \$15,000 \\\text { Municipal Bond Interest } & \$1,500 \\\text { Short-Tern Capital Gairs } & \$ 4,500 \\\text { Errployee Wages } & \$40,000 \\\text { Rent } & \$10,000 \\\text { Charitable Contributions } & \$ 25,000 \\\text { Sales } & \$ 175,000 \\\text { Repairs and Maintenance } & \$ 5,000 \\\text { Long-Tern Capital Gains } & \$ 12,000 \\\text { Fines and Penalties } & \$5,000 \\\text { Guararteed Payment to Lloyd } & \$ 25,000\end{array}$ Given these items,what amount of ordinary business income (loss)and what separately-stated items should be allocated to each partner for the year?