Matt and Joel Are Equal Partners in the MJ Partnership

question 110

Multiple Choice

Matt and Joel are equal partners in the MJ Partnership. For the current year ended December 31, the partnership has book income of $80,000, which includes the following deductions: (1) guaranteed payments (salaries) to partners: Matt, $35,000; and Joel, $25,000; and (2) charitable contributions, $6,000. The book income amount does not include any sales of capital assets or Sec. 1231 assets or any tax-exempt income. Based on the above information, what amount should be reported as ordinary income on the partnership return?

• A)$60,000
• B)$80,000
• C)$86,000
• D)$140,000

Recognize actions and decisions that can impact a company's ethical climate.

Discern the role of individual integrity and truthfulness in professional ethics.

Identify factors contributing to a company’s social performance evaluation.

Understand the legislation that encourages ethical behavior in organizations.

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Definitions:

Reliable Methods

Techniques or processes that consistently produce accurate, dependable results.

New Business Ideas

Innovative concepts or plans intended for implementation to start a business or offer new products or services.

Routine

A sequence of actions regularly followed; a fixed program or habitual set of activities.

Familiar Experiences

Events or activities that are recognized from past encounters or knowledge, leading to a sense of comfort or recognition.