Law homework help. The Greyjoy Partnership is equally owned by Theon and Yara. Theons basis in his partnership interest including his share of partnership liabilities is $89,100 at the beginning of 2020 calendar tax year of the partnership. Yaras basis in her interest is $35,640 including her share of partnership liabilities. Greyjoy reported the following income and expenses for its 2020 calendar tax year:Income from services…………………………………………………… $641,520Guaranteed payment to Theon…………………………………………. 320,760Guaranteed payment to Yara……………………………………………. 213,840Salaries to non-partner employees………………………………………. 71,280Depreciation expense………………………………………………………. 64,152Rent expense…………………………………………………………………. 71,280Utilities expense…………………………………………………………….. 35,640Tax-exempt interest income……………………………………………… 32,076Dividend income……………………………………………………………. 21,384Charitable contributions…………………………………………………….. 7,128Political contributions……………………………………………………… 14,256Long-term capital loss……………………………………………………… 17,820Cash distribution to Theon on 12/31/2020……………………………. 37,422Cash distribution to Yara on 12/31/20…………………………………. 85,800The Greyjoy Partnership also increased its recourse liabilities by $26,400 during 2020 and that liability is allocated equally to the two partners.(a) Compute Greyjoys ordinary income or loss from operations for its 2020 calendar tax year.(b) List any separately stated items passing for the equal partners.(c) Compute each partners basis in their partnership interest at the end of 2020, showing any income or gain taxable to them, how the distributions are treated, and any losses or expenses that are deductible by them.
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