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

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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
Charitable contribution (made October 1)
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
 
 
 
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