Question: Mabel, Loretta, and Margaret are equal partners in a local restaurant. The restaurant reports the following items for the current year:
| Revenue |
$ |
490,000 |
|
|
| Business expenses |
|
255,000 |
|
|
| Investment expenses |
|
124,500 |
|
|
| Short-term capital gains |
|
107,000 |
|
|
| Short-term capital losses |
|
(151,300) |
|
|
Each partner receives a Schedule K-1 with one-third of the preceding items reported to her.
How must each individual report these results on her Form 1040?