Question

Debbie and Betty operate the D&B partnership. Betty, a 50 percent partner, receives a guaranteed payment of $10,000 for her services in operating the partnership. The partnership has income before the guaranteed payment of $5,000. What is the taxable income Debbie and Betty must each report from the partnership for the year?
Debbie should report income of $.....…......
Betty should report income of $.............
Net loss = income ? guaranteed payment
= 5000-10000
=-5000
Share of loss =50%×-5000 = $2500
Debbie should report income of $
Since Debbie? guaranteed payment is more than the $25000 share of

Answer 1

Answer:4500

Step-by-step explanation:

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