Lloyd and Harry, Equal Partners, Form the Ant World Partnership

question 54

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:
Cost of Goods Sold
$85,000
Cash Distribution to Harry
$15,000
Municipal Bond Interest
$1,500
Short-Term Capital Gains
$4,500
Employee Wages
$40,000
Rent
$10,000
Charitable Contributions
$25,000
Sales
$175,000
Repairs and Maintenance
$5,000
Long-Term Capital Gains
$12,000
Fines and Penalties
$5,000
Guaranteed Payment to Lloyd
$25,000
Given these items, what amount of ordinary business income (loss) and what separately-stated items should be allocated to each partner for the year?

---

Definitions:

Broker Role

The function or position of acting as an intermediary between parties to facilitate an agreement or provide specialized services.

Community Organization

Community organization is the process of bringing together individuals and groups from a community to work collectively on addressing issues and improving conditions within that community.

Social Work Practice

The professional application of social work values, principles, and techniques to help individuals, families, and communities enhance or restore their capacity for social functioning.

EPAS

Credentialing process for social work education programs, ensuring they meet set quality standards.