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.
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 6CPA
Related questions
Question
Ans
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT