The Partnership of Felix and Oscar Had the Following Items

question 75

Multiple Choice

The partnership of Felix and Oscar had the following items of income during the tax year ended December 31,2013: $\begin{array}{lc}\text { Income from operations } & \$ 156,000 \\\text { Tax-exempt interest income } & \$ 8,000 \\\text { Dividend income } & \$ 6,000\end{array}$ What is the total ordinary income from business activities passed through by the partnership for the 2013 tax year?

• A)$156,000
• B)$157,000
• C)$162,000
• D)$170,000
• E)None of the above

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Definitions:

Net Profit

The total earnings after all expenses and taxes have been subtracted from revenue.

Overhead Expenses

costs related to the day-to-day running of a business but not directly tied to producing goods or services.

Selling Price

The amount of money for which a seller offers a product or service to the buyer.

Rate of Profit

A measurement, usually expressed as a percentage, reflecting the profitability of an investment or business compared to the initial cost.