Casey Is a Partner in the Slugger Partnership

question 2

Multiple Choice

Casey is a partner in the Slugger Partnership.The partnership sent Casey a Schedule K-1 for its year-ended on September 30,2011.The Schedule K-1 reported Casey's share of net income after guaranteed payments of $60,000 and guaranteed payments to Casey of $6,000 ($500 per month) .Casey's share of the partnership's income after guaranteed payments for October 1,2011 through December 31,2011 was $6,000.Also,Casey's guaranteed payments for that time period was $3,000 ($1,000 per month) .How much income from the partnership should Casey report on his 2011 individual income tax return?

• A)$58,500
• B)$66,000
• C)$67,500
• D)$75,000

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Definitions:

Competitors

Entities or firms in the same industry or market that offer similar goods or services to consumers.

Herfindahl-Hirschman Index

A measure of market concentration used to determine the level of competition within an industry, calculated by summing the squares of the market shares of each firm within the sector.

Industry

Refers to the production of goods or services within an economy, categorized into sectors such as manufacturing, services, and agriculture.

Firms

Business organizations engaged in offering goods or services to consumers, often characterized by the ownership structure and size.