Illuminating Light Partnership Had the Following Revenues, Expenses, Gains, Losses

question 26

Essay

Illuminating Light Partnership had the following revenues, expenses, gains, losses, and distributions: $\begin{array}{lr}\text { Sales } & \$ 60,000 \\\text { Long-Term Capital Gain } & \$ 8,000 \\\text { Qualified Dividends } & \$ 5,000 \\\text { Cost of Goods Sold } & \$ 40,000 \\\text { Employee Wages } & \$ 15,000 \\\text { Guaranteed Payment to Managing Partner } & \$ 25,000 \\\text { Municipal Bond Interest } & \$ 5,000 \\\text { Section 179 Expense } & \$ 10,000 \\\text { MACRS Depreciation } & \$ 8,000 \\\text { Section 1231 Gains } & \$ 3,000 \\\text { Fines and Penalties } & \$ 1,500\end{array}$ Given these items, what is Illuminating Light's ordinary business income (loss) for the year?

---

Definitions:

Calcitonin

Calcitonin is a hormone produced by the thyroid gland that helps regulate calcium levels in the blood by lowering them.

Glycogenolysis

Glycogenolysis is the metabolic process of breaking down glycogen into glucose, which serves as an important energy source for the body during physical activity or between meals.

Gluconeogenesis

The metabolic process by which organisms produce glucose from non-carbohydrate substrates such as amino acids and glycerol, especially significant during periods of fasting or intense exercise.

Glycogen Synthesis

The process of converting glucose into glycogen, which is stored in the liver and muscle cells for energy.