Bamber partnership reports 60000 of ordinary income for its


On January 17 of the current year, the Bamber Partnership was formed by Bob Miller, Carl Penn, and Don Allen. Each partner has an equal interest in the capital and profits of the partnership. The Bamber partnership will report on the basis of a calendar year. The following contributions were made when the partnership was formed.

Partner Property: Basis to Partner FMV

Bob......Cash $15,000 $15,000

Carl......Inventory $9,000 $15,000

Don......Capital Asset $ 35,000 $15,000

Both the inventory and capital asset are inventory to the Bamber partnership. On May 22 the partnership sells the inventory for $27,000. On July 19 the partnership sells the capital asset which Don contributed for $9,000. The partnership agreement is silent regarding the property contributed by the partners. Without regard to the sale of the contributed properties, the Bamber partnership reports $60,000 of ordinary income for its current tax year. As a result of partnership transactions, what does each partner report on his individual tax return for the current year?

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Accounting Basics: Bamber partnership reports 60000 of ordinary income for its
Reference No:- TGS0598324

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