Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the following revenue, expenses, gains, losses, and distributions:  Cost of Goods Sold$85,000Cash Distribution to Harry$15,000Municipal Bond Interest$1,500Short-Term Capital Gains$4,500Employee Wages$40,000Rent$10,000Charitable Contributions$25,000Sales$175,000Repairs and Maintenance$5,000Long-Term Capital Gains$12,000Fines and Penalties$5,000Guaranteed Payment to Lloyd$25,000  Given these items, what amount of ordinary business income (loss) and what separately stated items should be allocated to each partner for the year?

What will be an ideal response?


The amount of ordinary business income (loss) and the separately stated items allocated to Lloyd and Harry are shown in the table below:
 

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