Bevo Partnership Had the Following Financial Activity for the Year $\quad$

Bevo Partnership had the following financial activity for the year:
Gross receipts from sales $\quad$$\quad$$\quad$$\quad$ $ 860,000
Cost of goods sold $\quad$$\quad$$\quad$$\quad$$\quad$ $\quad$ (390,000 )
Operating expenses $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ (180,000 )
Business meals and entertainment $\quad$$\quad$ (20,000 )
Section 1231 gain on equipment sale $\quad$$\quad$ 5,000
Distribution to partners $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ (75,000 )
Compute Bevo's ordinary business income for the year and indicate which items must be separately stated.

Correct Answer:

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Ordinary business income: $280,000 = $86...

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