Required information [The following information applies to the questions displayed below.] Oscar, Felix, and Marv are al

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Required Information The Following Information Applies To The Questions Displayed Below Oscar Felix And Marv Are Al 1 (142.92 KiB) Viewed 28 times

Required information [The following information applies to the questions displayed below.] Oscar, Felix, and Marv are all one-third partners in the capital and profits of Eastside General Partnership. In addition to their normal share of the partnership's annual income, Oscar and Felix receive annual guaranteed payments of $7,000 to compensate them for additional services they provide. Eastside's income statement for the current year reflects the following revenues and expenses: Sales revenue Dividend income Short-term capital gains Cost of goods sold Employee wages Depreciation expense Guaranteed payments Miscellaneous expenses Overall net income $ 420,000 5,700 2,800 (210,000) (115,000) (28,000) (14,000) (9,500) $ 52,000 In addition, Eastside owed creditors $120,000 at the beginning of the year but managed to pay down its liabilities to $90,000 by the end of the year. All partnership liabilities are allocated equally among the partners. Finally, Oscar, Felix, and Marv had a tax basis of $80,000 in their interests at the beginning of the year. (Round your intermediate calculations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) b. Assume the partners began the year with a tax basis of $10,000 and all the liabilities were paid off on the last day of the year. How much gain will the partners recognize when the liabilities are paid off? What tax basis do the partners have in their partnership interests at the end of the year? Oscar Felix Mary Recognized gain Tax basis