In the current year, the POD Partnershipreceived revenues of $200,000 and paid thefollowing amounts: $50,000 in rent and utilities,and $20,000 as a distribution to partner Olivia.In addition, the partnership earned $6,000 oflong-term capital gains during the year. PartnerDonald owns a 50% interest in the partnership.How much income must Donald report for thetax year?a $68,000 ordinary income.b $78,000 ordinary income.$65,000 ordinary income; $3,000 of long-termcapital gains.d $75,000 ordinary income; $3,000 of long-termcapital gains.eNone of the above.

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Answered: In the current year, the POD…

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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