Essay
Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the following revenue, expenses, gains, losses, and distributions:
Cost of Goods Sold
$85,000
Cash Distribution to Harry
$15,000
Municipal Bond Interest
$1,500
Short-Term Capital Gains
$4,500
Employee Wages
$40,000
Rent
$10,000
Charitable Contributions
$25,000
Sales
$175,000
Repairs and Maintenance
$5,000
Long-Term Capital Gains
$12,000
Fines and Penalties
$5,000
Guaranteed Payment to Lloyd
$25,000
Given these items, what amount of ordinary business income (loss) and what separately-stated items should be allocated to each partner for the year?
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