42.   LO.3, 4 Faye, Gary, and Heidi each have a one-third interest in the capital and profits  of  the  FGH  Partnership.  Each  partner  had  a  capital  account of

 

$50,000 at the beginning of the tax year. The partnership profits for the tax year  were $270,000. Changes in their capital accounts during the tax year were  as follows:

 

 

 

Â	Faye	Gary		Heidi		Total
Beginning balance	$  50,000	Â	$  50,000	Â	$  50,000	Â	$150,000
Withdrawals	(20,000)	Â	(35,000)	Â	(10,000)	Â	(65,000)
Additional  contributions	–0–	Â	–0–	Â	5,000	Â	5,000
Allocation of profits	90,000	Â	90,000	Â	90,000	Â	270,000
Ending balance	$120,000	Â	$105,000	Â	$135,000	Â	$360,000
Â	Â	Â	Â	Â	Â	Â	Â

 

 

 

In arriving at the $270,000 of partnership profits, the partnership deducted $2,400 ($800 for each partner) in premiums paid for group term life insurance on the part- ners. Faye and Gary are 39 years old, and Heidi is 35 years old. Other employees are also eligible for group term life insurance equal to their annual salary. These premi- ums of $10,000 have been deducted in calculating the partnership profits of $270,000. Compute each partner’s gross income from the partnership for the tax year.