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Business, 05.09.2019 23:30 brinleychristofferse

Baker, a cash-basis, calendar-year taxpayer, is a partner in an accrual-basis partnership that reports its taxable income on an october 31 ļ¬scal year. baker has been provided the following information:
fy 17-18 fy 18-19
bakerā€™s distributive share of partnership ordinary income$30,000 $40,000
bakerā€™s "salary"
$1,000 per month $12,000 ($1,000 x 12)
$1,500 per month $18,000 ($1,500 x 12)
the partnership was short of cash and paid none of the above to baker until january 3, 2020. compute bakerā€™s income from the partnership for 2018.

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