1. Anastacia is a 40 percent general partner in Jimenez Partnership that had ser
ID: 2474559 • Letter: 1
Question
1. Anastacia is a 40 percent general partner in Jimenez Partnership that had service revenue of $200,000, salary paid to Anastacia of $40,000, and other operating expenses of $110,000. Based on this information alone, Anastacia will pay income tax and self-employment tax, respectively, on how much?
a. $40,000; $40,000
b. $90,000; $40,000
c. $60,000; $60,000
d.$60,000; $40,000
2. Anastacia had a basis in Jiminez Partnership at the beginning of the year of $350,000. Anastacia's share of income for the year was $20,000 and Anastacia received distributions of $50,000. How much is Anastacia's basis at the end of the year?
a. $340,000
b. $350,000
c. $320,000
d. $300,000
Explanation / Answer
1) b. $90,000; $40,000
($200,000-$110,000), $40,000
2) c. $320,000
($350,000 +$20,000 - $50,000)
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