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

question 24

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.

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Definitions:

Sexual Maturity

The stage in an organism's life cycle when it becomes capable of reproduction.

Vulnerable

A state of being susceptible to harm or damage, often used to describe species at risk of extinction or ecosystems facing threats.

Population Size

Population Size indicates the total number of individuals or units within a specified area or population group at a given time.

Ability

The capacity, skill, or proficiency to do something effectively.