Detailed Answer
(c) The requirement is to determine the amount that
Gilroy should report for 2012 as total income from the partnership.
Gilroy’s income will consist of his share of the partnership’s
ordinary income for the fiscal year ending June 30, 2012 (the
partnership year that ends within his year), plus the twelve
monthly guaranteed payments that he received for that period of
time.
25% × $88,000 = $22,000
12 × $ 1,000 = 12,000
Total income = $34,000