On January 2, Year 3, Arch and Bean contributed cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For Year 3, the partnership's net income was $40,000. A distribution of $5,000 was made to Arch during Year 3. JK paid Arch and Bean each a guaranteed payment of $6,000 for services rendered to the partnership. What amount of income will Arch report from the partnership in Year 3? A. $25,000 B. $35,000 C. $36,000 D. $41,000
On January 2, Year 3, Arch and Bean contributed cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For Year 3, the partnership's net income was $40,000. A distribution of $5,000 was made to Arch during Year 3. JK paid Arch and Bean each a guaranteed payment of $6,000 for services rendered to the partnership. What amount of income will Arch report from the partnership in Year 3? A. $25,000 B. $35,000 C. $36,000 D. $41,000
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Question
On January 2, Year 3, Arch and Bean contributed cash equally to form the JK Partnership. Arch and Bean share profits and losses in a ratio of 75% to 25%, respectively. For Year 3, the partnership's net income was $40,000. A distribution of $5,000 was made to Arch during Year 3. JK paid Arch and Bean each a guaranteed payment of $6,000 for services rendered to the partnership. What amount of income will Arch report from the partnership in Year 3?
|
A.
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$25,000 | |
|
B.
|
$35,000 | |
|
C.
|
$36,000 | |
|
D.
|
$41,000 |
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