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:

Productive Capabilities

The potential or capacity of a company or a piece of equipment to produce goods or services.

Double-declining-balance

The double-declining-balance method is a form of accelerated depreciation that doubles the normal depreciation rate, reducing the asset's value more quickly in the early years of its life.

Book Value

The book value of an asset is its original purchase cost minus any accumulated depreciation or amortization, reflecting its recorded value on a company's balance sheet.

Useful Life

The estimated period over which an asset is expected to be usable by a company for its intended purpose.