# On January of the current year, Margaret (15%), Darrick(35%), and Dee (50%) are partners in the UPC

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On January of the current year, Margaret (15%), Darrick(35%), and Dee (50%) are partners in the UPC Partnership. During the current year, UPC reports the following results. All items occur evenly throughout the year unless otherwise indicated. Assume the current year is not a leap year.

Ordinary income
\$130,000
Long-term capital gain (recognized September 1)
15,000
Short-term capital loss (recognized March 2)
8,500
30,000
Requirements

a.
What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year?
b.
Assume that Margaret purchases a 10% partnership interest from Darrickon July 1 so that Margaret and Darrick

each own 25% from that date through the end of the year. What are Margaret and Darrick's distributive shares for the current year?
Requirement a. What are the distributive shares for each partner, assuming they all continue to hold their interests at the end of the year?

Margaret
Darrick
Dee
Ordinary income

Long-term capital gain

Short-term capital loss

Charitable contribution deduction

Requirement b. Assume that

Margaret

purchases a 10% partnership interest from Darrick on July 1 so that Margaret and Darrick each own 25%

from that date through the end of the year. What are Margaret and Darrick's

distributive shares for the current year? (Use 365-day year for date ratios. Do not round date ratios or any interim calculations. Round your final answer to the nearest whole dollar.)

First calculate the partnership's income split before and after the ownership changes.

1/1 - 6/30
7/1 - 12/31
Ordinary income

Long-term capital gain

Short-term capital loss

Charitable contribution

Now, calculate each partner's distributive share of the partnership results. First for the period January 1 through June 30, then for the period July 1 through December 31. (Round to the nearest whole dollar.)

Margaret
Darrick
1/1 through 6/30

Ordinary income

Long-term capital gain

Short-term capital loss

Charitable contribution

7/1 through 12/31

Ordinary income

Long-term capital gain

Short-term capital loss

Charitable contribution