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In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year? a $68,000 ordinary income. b $78,000 ordinary income. $65,000 ordinary income; $3,000 of long-term capital gains. d $75,000 ordinary income; $3,000 of long-term capital gains. e None of the above.

In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year? a $68,000 ordinary income. b $78,000 ordinary income. $65,000 ordinary income; $3,000 of long-term capital gains. d $75,000 ordinary income; $3,000 of long-term capital gains. e None of the above.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year? a $68,000 ordinary income. b $78,000 ordinary income. $65,000 ordinary income; $3,000 of long-term capital gains. d $75,000 ordinary income; $3,000 of long-term capital gains. e None of the above.
Transcribed Image Text:In the current year, the POD Partnership received revenues of $200,000 and paid the following amounts: $50,000 in rent and utilities, and $20,000 as a distribution to partner Olivia. In addition, the partnership earned $6,000 of long-term capital gains during the year. Partner Donald owns a 50% interest in the partnership. How much income must Donald report for the tax year? a $68,000 ordinary income. b $78,000 ordinary income. $65,000 ordinary income; $3,000 of long-term capital gains. d $75,000 ordinary income; $3,000 of long-term capital gains. e None of the above.
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