Elena Owns 25% of a Partnership That Reported Net Income

question 98

Multiple Choice

Elena owns 25% of a partnership that reported net income of $100,000 for the year. During the year $5,000 was distributed to Elena from the partnership. How much should Elena include in her taxable income for the year?

• A) $30,000
• B) $25,000
• C) $5,000
• D) $0

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Definitions:

James Marcia

A developmental psychologist known for his work on adolescent identity formation and his theory of identity status development.

Identity Statuses

The various phases individuals go through in the development of a sense of self, including exploration and commitment in various life areas.

Moratorium Stage

A phase in Erik Erikson's theory of psychosocial development where individuals explore their identity and sense of self without making definite commitments.

James Marcia

A developmental psychologist who expanded on Erikson's theory, introducing the concept of identity statuses to describe the process of identity development in adolescents and adults.