Business Entity Problem:
This problem is designed for those using the "business entity" approach. The solution may require information from Chapters 14-16. The Hampton-Lewis Partnership owns an apartment building. Gross income from the apartments was $200,000. Total deductions were $260,000. The two partners share profits and losses equally
a. How will the partnership report the resulting $60,000 loss?
b. If Hampton-Lewis was an S corporation (with two shareholders who each own 50% of the stock), how would the loss be reported?
c. If Hampton-Lewis was a regular C corporation (with two shareholders who each own 50% of the stock), how would the loss be reported?