Question

separately stated items were incorrectly included in ordinary income for rex partnership. of the revenue items listed, what is the total amount of partnership items that must be separately stated? dividend income $ 5,000 investment income 17,000 ordinary income from other partnerships 29,000 tax-exempt income 32,000 net farm profit 44,000 royalties 11,000 cancellation of debt 20,000 $65,000 $85,000 $118,000 $97,000

Answer 1

The total amount of partnership items that must be separately stated for Rex Partnership is $158,000.

Step-by-step explanation:

In order to determine the total amount of partnership items that must be separately stated for Rex Partnership, we need to identify the items that are required to be reported separately for tax purposes. These items include:

• Dividend income: $5,000
• Investment income: $17,000
• Ordinary income from other partnerships: $29,000
• Tax-exempt income: $32,000
• Net farm profit: $44,000
• Royalties: $11,000
• Cancellation of debt: $20,000

The total amount of partnership items that must be separately stated is therefore $158,000 ($5,000 + $17,000 + $29,000 + $32,000 + $44,000 + $11,000 + $20,000 = $158,000).