Task: Diamond Co. and Bill are equal partners in the calendar year F & F Partnership. Diamond Co. uses a fiscal year ending June 30, and Bill uses a calendar year. Diamond Co. receives an annual guaranteed payment of $50,000. F & F's taxable income (after deducting Diamond Co.'s guaranteed payment) is $40,000 for 2009 and $50,000 for 2010.
Question 1: What is the amount of income from the partnership that Diamond Co. must report for its tax year ending June 30, 2010?
Question 2: What is the amount of income from the partnership that Bill must report for her tax year ending December 31, 2010?
Question 3: Assume Diamond Co.'s annual guaranteed payment is increased to $60,000 starting on January 1, 2010, and the partnership's taxable income for 2009 and 2010 (after deducting Diamond Co.'s guaranteed payment) is the same (Le., $40,000 and $50,000, respectively). What is the amount of income from the partnership that Diamond Co. must report for its tax year ending June 30, 2010?