In December of 2016, Miss Havisham and Pip form a wedding planning business. Each of them own 50 percent of the partnership. The partnership establishes a September 30th year-end since most weddings are during the summer. Therefore, the partnership's initial year-end is September 30, 2017. For the month of December 2016, the partnership made $3,000 after Miss Havisham's guaranteed payment of $1,000. From January through September of 2017, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Miss Havisham.

a.How much income should Miss Havisham report for 2016?
b.How much income should Miss Havisham report for 2017?

Question

In December of 2016, Miss Havisham and Pip form a wedding planning business. Each of them own 50 percent of the partnership. The partnership establishes a September 30th year-end since most weddings are during the summer. Therefore, the partnership's initial year-end is September 30, 2017. For the month of December 2016, the partnership made $3,000 after Miss Havisham's guaranteed payment of $1,000. From January through September of 2017, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Miss Havisham.
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a.How much income should Miss Havisham report for 2016?
b.How much income should Miss Havisham report for 2017?

Quizplus · Accepted Answer

The Answer of In December of 2016, Miss Havisham and Pip form a wedding planning business. Each of them own 50 percent of the partnership. The partnership establishes a September 30th year-end since most weddings are during the summer. Therefore, the partnership's initial year-end is September 30, 2017. For the month of December 2016, the partnership made $3,000 after Miss Havisham's guaranteed payment of $1,000. From January through September of 2017, the partnership made a net income of $65,000 after a $1,500 per month guaranteed payment to Miss Havisham.
​
a.How much income should Miss Havisham report for 2016?
b.How much income should Miss Havisham report for 2017?

In December of 2016, Miss Havisham and Pip Form a Wedding