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returns. The partnership's returns for 1988, 1989, and
1990 respond to the question "which accounting method" by
indicating that the partnership is on the "cash" method of
accounting. The partnership's return for 1991 indicates
that the partnership is on the "accrual" method of
accounting. The final return of the partnership for 1992
does not respond to that question.
Beaufort Leaf's returns for 1988 through 1992 report
the following items on Schedule K, Partner's Shares of
Income, Credits, Deductions, Etc.:
1988 1989 1990 1991 1992
Ordinary income from trade
or business activities$6,595.45 $15,075.65 $47,204.60 $46,952.60$30.33
Interest income 2,471.80 6,734.72 -0-3,286.00 -0-
Guaranteed payments
to partners 30,000.00 30,000.00 30,000.00 30,000.0017,000.00
Net long-term capital gain267.33 -0- -0- -0--0-
39,334.58 51,810.37 77,204.60 80,238.6017,030.33
The above-guaranteed payments of $30,000 per year for 1988
through 1991 and $17,000 for 1992 were paid entirely to
Mr. Roberts. The record does not explain why Mr. Roberts
was paid $30,000 per year after the partners had initially
agreed that he would be paid $20,000 per year.
According to Beaufort Leaf's returns, the share of
each of the partners in the net income of the partnership
is as follows:
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Last modified: May 25, 2011