Answer:
Fran losses -2000 and Robert gains 3000
Explanation:
Solution
Recall that,
Fran and Robert own Rf Partnership of 40% and 60% respectively.
Ordinary loss =$140,000
Long-term capital gain = $20,000
Before including the current year's gain and loss,
Frank and Robert had bases for their interest partnership = $46,000 and $75,000
Needed: What gain or loss should each partner report on his or her individual tax return
Now,
Particulars Fran ($) Robert($)
The Interest Basis 46000 75000
Add Long-term Capital gain
($20000*40/100)(20000*60/100) 8000 12000
The Income before losses 54000 87000
Less:ordinary loss
(140000*40/100)(140000*60/100) 56000 84000
Gain or loss to be reported -2000 3000
Therefore Fran losses - 2000 and Robert gains 3000
