Rowan and Sanjay Are Equal Partners in a Partnership,which Uses

question 144

Multiple Choice

Rowan and Sanjay are equal partners in a partnership,which uses the calendar year as its tax year.On September 1,this year,Hailley contributed $60,000 cash for a one-third interest in the partnership.The partnership reports $72,000 of ordinary income for the tax year ending on December 31 of this year.The income allocation to Hailley is (assume the elective proration method with a monthly convention)

• A)$24,000.
• B)$12,000.
• C)$0.
• D)$8,000.

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Definitions:

Probability

The evaluation of how likely it is for an event to happen.

Independent Events

Two or more events where the occurrence of one does not affect the probability of the others occurring.

Conditional Probability

The probability of an event given that another event already occurred. The conditional probability of A given B is P(A ∣ B) = P(A ∩ B)/P(B).

P(B | A)

The probability of event B occurring given that event A has already occurred, a concept in conditional probability.