XYZ X Y z
Gross Income 3,000,000 800,000 1,000,000 2,000,000
Expenses 900,000 200,000 500,000 800,000
Income Tax paid 100,000 80,000 150,000 none
Capital losses 120,000 20,000 300,000 none
X is a widower with 3 qualified dependent minor children, while Y is single with 5 illegitimated recognized minor children from different mothers and Z is single.
Compute the income tax due from XYZ, X, Y and Z for the year if XYZ Partnership is a:
1. Trade Partnership
2. General Professional Partnership
XYZ agreed that they will share profit and losses at a ratio of 7:9:8.