Questions Of Financial Account Axel is a calendar-year taxpayer. He is a 25% partner in GNR Partnership, which uses an August 31 fiscal year-end. GNR Partnership had $120,000 of ordinary income for the year ended August 31, 2004, and $150,000 of ordinary income for the year ended August 31, 2005. Axel withdrew $50,000 from the partnership on December 1, 2004, when he had a basis of $138,000 in the partnership. What amount should Axel report on her 2004 tax return as ordinary income from GNR Partnership? a. $30,000 b. $37,500 c. $50,000 d. $80,000
Questions Of Financial Account Axel is a calendar-year taxpayer. He is a 25% partner in GNR Partnership, which uses an August 31 fiscal year-end. GNR Partnership had $120,000 of ordinary income for the year ended August 31, 2004, and $150,000 of ordinary income for the year ended August 31, 2005. Axel withdrew $50,000 from the partnership on December 1, 2004, when he had a basis of $138,000 in the partnership. What amount should Axel report on her 2004 tax return as ordinary income from GNR Partnership? a. $30,000 b. $37,500 c. $50,000 d. $80,000
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 14CE
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Transcribed Image Text:Questions Of Financial Account
Axel is a calendar-year taxpayer. He is a 25% partner in GNR
Partnership, which uses an August 31 fiscal year-end. GNR Partnership
had $120,000 of ordinary income for the year ended August 31, 2004,
and $150,000 of ordinary income for the year ended August 31, 2005.
Axel withdrew $50,000 from the partnership on December 1, 2004,
when he had a basis of $138,000 in the partnership. What amount
should Axel report on her 2004 tax return as ordinary income from GNR
Partnership?
a. $30,000
b. $37,500
c. $50,000
d. $80,000
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