| ACC221 Lesson 6 Case Study Template |
| Name: |
| MEID: |
| Part 1 |
| Scenario: Jake Scoots LP, a calendar-year partnership, provides scooter repair services and rents scooters. The business started on January 1, Year 1. Jake owns 60% of the partnership, and Kelly owns 40%. Jake, a general partner, manages the shop and receives a guaranteed payment from the partnership. Kelly is a limited partner and is not involved in the operations of the business. |
| Instructions: Using the data from the lesson, complete the Excel spreadsheet to calculate the amount of each partner's basis in the partnership interest at the end of Year 1 and Year 2. |
| Access the Financial Statements |
| Enter losses, deductions, and distributions as negative values. |
| Enter income, gains, and contributions as positive values. |
| If an item is zero, or the item does not impact basis in the partner's partnership interest, enter a zero. |
| | Jake | Kelly |
| Year 1: |
| Beginning basis in partnership interest | $0 | $0 |
| Contributions |
| Partnership recourse debt (trade accounts payable) |
| Partnership nonrecourse secured debt (land) |
| Ordinary business income |
| Nontaxable income |
| Separately stated income items |
| Guaranteed payment (John) |
| Distributions |
| Nondeductible expenses |
| Ordinary business loss |
| Separately stated expense items |
| Year 1 Ending Basis in Partnership Interest |
| Year 2: |
| Contributions |
| Increase in partnership recourse debt (accounts payable) |
| Increase in partnership nonrecourse secured debt (land) |
| Ordinary business income |
| Nontaxable income |
| Separately stated income items |
| Guaranteed payment (John) |
| Decrease in partnership recourse debt (accounts payable) |
| Decrease in partnership nonrecourse secured debt (land) |
| Distributions |
| Nondeductible expenses |
| Ordinary business loss |
| Separately stated expense items |
| Year 2 Ending Basis in Partnership Interest |
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ACC221_L6_CaseStudyTemplate_5-3-Start_1.xlsx
