Jake Scoots LP, a calendar-year partnership, provides scooter repair services and rents scooters. The business started on January 1, Year 1. Jake owns 60% of the partnership, and Kelly owns 40%. Jake, a general partner, manages the shop and receives a guaranteed payment from the partnership. Kelly is a limited partner and is not involved in the operations of the business.
Using the information below, complete the Excel spreadsheet to calculate the amount of each partner’s basis in the partnership interest at the end of Year 1 and Year 2.
Financial Statements and Data
Click on each accordion to view the information needed to complete Part 1.
Posted Below under Jack
On January 1 of the current year, Mr. Clair and Mr. Hope established operations of their partnership Pear Technologies, a manufacturer of inventory software. Both partners actively participate equally. Pear’s income statement for the current calendar year is presented below.
Using the data provided, enter the appropriate values in the Part 2 table in the Excel spreadsheet as they would appear on page 1 of a partnership tax return.
Technology Income Statement and Related Information
Click on each link to view the information needed to complete Part 2 of the assignment.
Posted Below Under Pear